Winding up of sick industrial company upheld after failed rehabilitation, no viable revival proposal, and creditor support for liquidation.

A sick industrial company was found unable to revive within a reasonable time after a failed rehabilitation scheme. The record showed non-implementation of major scheme parameters, no meaningful progress towards rehabilitation, and no viable proposal from the company. Creditors and the monitoring agency supported winding up, and the company raised no objection. On those facts, the Board for Industrial and Financial Reconstruction's opinion that the company was unlikely to restore its net worth or become viable in future was accepted, and the company was ordered to be wound up with the Official Liquidator appointed to proceed with liquidation.

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Issues: Whether the company, found sick and unable to revive within a reasonable time, should be wound up on the basis of the Board for Industrial and Financial Reconstruction's opinion.

Analysis: The company had earlier been referred under the sick industrial companies law, and a rehabilitation scheme had failed. The record showed non-implementation of major parameters of the sanctioned scheme, no meaningful progress towards rehabilitation, and absence of any viable proposal from the company. Creditors and the monitoring agency supported winding up, and the company itself expressed no objection. On these facts, the opinion that the company was not likely to make its net worth exceed accumulated losses or become viable in future was accepted.

Conclusion: The company was ordered to be wound up, and the Official Liquidator was appointed to proceed with liquidation.

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