Maintainability of reference must be assessed on all relevant material before rejection; inadequate reasons justify remand.

A statutory authority must examine the effect of Supreme Court directions, the status of the respondent company, and all relevant material before rejecting an application challenging the maintainability of a reference. Where the authority fails to consider whether the reference has become legally incompetent and whether it still has jurisdiction to proceed, and gives no adequate reasons, the rejection cannot stand. The impugned order was therefore set aside and the matter remitted for fresh consideration in accordance with law.

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Issues: Whether the B.I.F.R. was justified in rejecting the petitioner's application without considering the Supreme Court's directions and the relevant material, and whether the matter required remand for fresh consideration.

Analysis: The challenge was directed against the B.I.F.R.'s rejection of the petitioner's application seeking dismissal of the reference. The relevant question was whether, after the Supreme Court had set aside the earlier orders and directed fresh proceedings, the B.I.F.R. could reject the application without examining the effect of those directions, the status of the respondent company, and the material placed before it, including the stand reflected in the respondent's balance sheet. The authority was required to consider whether the reference remained legally maintainable and whether it had jurisdiction to proceed further if the reference itself had become incompetent. The impugned order showed no proper consideration of the relevant material and no adequate reasons.

Conclusion: The rejection order was set aside and the matter was remitted to the B.I.F.R. for reconsideration of the petitioner's application in accordance with law.

Ratio Decidendi: A statutory authority must consider all relevant material and record reasons before rejecting an application, especially where the maintainability of the reference and its jurisdiction to proceed are in issue.

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