Winding up of sick industrial company follows accepted BIFR opinion when revival is no longer feasible and no contrary material exists.

Where the statutory authority's opinion under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 shows that revival of a sick industrial company is no longer feasible, and no objection or alternative proposal is placed before the Court, the Court may accept that opinion and order winding up. Consequent to the winding-up order, the Official Liquidator is appointed to take possession of the company's assets and books of account, and the person in possession must hand them over in consultation with the Official Liquidator.

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Issues: Whether the sick industrial company should be ordered to be wound up on the basis of the BIFR opinion and, consequentially, whether an Official Liquidator should be appointed and possession of assets handed over to him.

Analysis: The matter arose from an opinion under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, recommending winding up. The Court found no objection or alternative proposal warranting a different view and accepted the BIFR's conclusion that revival was no longer feasible. On that basis, the Court directed winding up of the company. Consequent to the winding-up order, the Official Liquidator was appointed to take over possession of the company's assets and books of account, and the person in possession of the assets was directed to hand them over in consultation with the Official Liquidator.

Conclusion: The company was ordered to be wound up and the Official Liquidator was appointed to take charge of its assets and records.

Ratio Decidendi: Where the statutory authority's opinion under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 indicates that revival is not feasible and no contrary material is placed before the Court, the Court may accept the opinion and order winding up with consequential steps for administration of the company's assets.

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