TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, after the Board for Industrial and Financial Reconstruction records an opinion under section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985 that a sick industrial company should be wound up, the High Court retains any discretion to re-examine the merits or to follow the ordinary winding-up procedure under the Companies Act, 1956.
Analysis: The statutory scheme of the Sick Industrial Companies (Special Provisions) Act, 1985 was treated as a special enactment intended to deal expeditiously with sick industrial companies. Once the Board, after inquiry under section 16 and consideration of the relevant material, forms the opinion under section 20(1) that the company should be wound up, section 20(2) obliges the High Court to act on that opinion. The opinion of the Board was held to be binding on the High Court on the question whether the company should be wound up on the just and equitable ground. In consequence, the High Court was held not to have any further discretion to reopen the matter, and the usual procedural steps under the Companies Act, 1956, including advertisement and hearing on the merits of the winding up question, were held to be unnecessary. The Court also held that, after such opinion is forwarded, the High Court proceeds only to give effect to the winding-up order and the subsequent incidents of winding up under the Companies Act follow from that order.
Conclusion: The High Court was bound to pass a winding-up order on receipt of the Board's opinion under section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985, without undertaking a fresh merits inquiry or insisting on the ordinary pre-winding-up procedure.
Ratio Decidendi: An opinion of the Board under section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985 that a sick industrial company should be wound up is binding on the High Court, which must pass the winding-up order and cannot re-adjudicate the question or insist on ordinary Companies Act procedure at that stage.
TaxTMI 
