BIFR opinion on sickness and public interest can justify winding up where no effective objection is raised.

A company was wound up after the Board for Industrial and Financial Reconstruction declared it sick, found its net worth could not be restored to positive, and opined that winding up would be just and in the public interest under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Court noted that no effective objection was filed and the company had not been represented before the Board. On that basis, the Court directed winding up and appointed the Official Liquidator to take possession of the company's assets and affairs.

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Issues: Whether, on the opinion of the Board for Industrial and Financial Reconstruction under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the company was liable to be wound up.

Analysis: The Board had declared the company sick, recorded that its net worth could not be made positive, and formed the view that winding up would be just and in public interest. No effective objection was filed before the Court, and the materials showed absence of representation for the company before the Board as well.

Conclusion: The company was ordered to be wound up and the Official Liquidator was appointed to take possession of the assets and affairs of the company in liquidation.

Ratio Decidendi: Where the Board for Industrial and Financial Reconstruction, acting under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, forms a considered opinion that a sick company cannot revive and that winding up is in public interest, the Court may direct winding up in the absence of contrary objection.

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