2002 (1) TMI 1203

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....l Reconstruction (hereinafter referred to as the Board) the company was declared a sick industrial company within the meaning of section 3(i)( o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short the Act). One Shri V.K. Saxena was appointed its Special Director to safeguard the financial and other interests of the company. The Board formed an opinion that the company could not revive on its own and that it was necessary in public interest to revive/rehabilitate it and accordingly the Industrial Finance Corporation of India (IFCI) was appointed as the Operating Agency under section 17(3) of the Act to examine the viability and submit its report for the revival of the company. The company and its promoters were direct....

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....this notice, the company and its promoters sought time to submit a rehabilitation package but they again failed to do so. The Board found that the company owed more than Rs. 100 crores to the Banks and other financial institutions and that in view of this huge debt liability the company had to be wound up. Consequently, the Board confirmed its prima facie opinion that the company was not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof was not likely to become viable in future and hence it was just, equitable and in public interest that it should be wound up. It forwarded its opinion to this Court by order dated 4-1-2000. ....

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....ard that the company should deposit rupee fifty lacs in an interest bearing no-lien account within a reasonable time but the company failed to deposit even this meagre amount. We are clearly on the view that no fault can be found with such a direction/suggestion as it was only meant to test the bona fides of the promoters who were time and again seeking extension for submitting a revival scheme which they never did. Keeping in view the total debt liability of the company which runs into more than 100 crores, the direction to the promoters to deposit only rupees fifty lacs was more than reasonable but when this small amount even could not be deposited, what hope is left for the revival of the company. The learned senior counsel submitted bef....