Winding up of sick industrial company upheld where no viable rehabilitation proposal and no effective objection were raised.

Where a sick industrial company is found not likely to achieve viability within a reasonable time and no effective rehabilitation proposal is placed before the Board, the Court may accept the Board's reasoned opinion and direct winding up. Here, the company had no revival plan, the operating agency reported no proposal for rehabilitation, creditors and institutions raised no objection, and the company and its promoters did not contest the winding-up notice or offer a defence. The Board's view that winding up was just, equitable and in the public interest was accepted, and liquidation was ordered with the official liquidator appointed to proceed in accordance with law.

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Issues: Whether, on the opinion of the Board for Industrial and Financial Reconstruction that the company was not viable and should be wound up, the Court should order winding up of the company.

Analysis: The company had been declared sick, no viable rehabilitation proposal had been placed before the Board, the operating agency reported absence of any revival proposal, and the creditors and institutions that appeared had no objection to winding up. The company and its promoters did not contest the winding-up notice or offer any objection before the Court. On these facts, the opinion of the Board that the company was not likely to achieve viability within a reasonable time and that winding up was just, equitable and in public interest was accepted.

Conclusion: The company was ordered to be wound up and the official liquidator was appointed to proceed with liquidation in accordance with law.

Final Conclusion: The Court conclusively accepted the statutory opinion for winding up and directed liquidation of the company.

Ratio Decidendi: Where the Board for Industrial and Financial Reconstruction forms a reasoned opinion that a sick industrial company is not likely to become viable and there is no effective objection or rehabilitation proposal, the Court may accept that opinion and order winding up.

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