2001 (9) TMI 1049

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....r Industrial and Financial Reconstruction ('AAIFR'). 2. The starting point of the controversy appears to be an application for reference made under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 ('the Act'). By order dated 20-7-1994, BIFR held that the petitioner is a sick company and deserves to be wound up. The said order was challenged before the AAIFR which, inter alia, held by order dated 6-6-1995 that the reference was incompetent and premature. Thereafter another reference was filed on 24-12-1996 purportedly under section 15(1) of the Act. There was a communication from the BIFR rejecting the said purported reference on the ground that a reference can only be made by a sick company, duly supported by a ....

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....n est and AAIFR should have held that no order existed which could be assailed and there was no question of delay in presentation as held by it. Per contra, the learned counsel appearing for BIFR and State Bank of Bikaner and Jaipur submitted that the petitioner has not come to this Court with clean hands. The sole purpose appears to be to prolong the matter and thus get the protection available under section 22 of the Act. It is not even revealed that there was a prayer for a reference which was turned down by the BIFR on the ground that it was not competent. 4. We had asked the functionary of the BIFR to file an affidavit indicating the modalities adopted. Original records were also produced before us. We find that in many instances th....

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....ecified in the order. (3) The Board or, as the case may be, the operating agency shall complete its inquiry as expeditiously as possible and endeavour shall be made to complete the inquiry within sixty days from the commencement of the inquiry. Explanation.-For the purposes of this sub-section, an inquiry shall be deemed to have commenced upon the receipt by the Board of any reference or information or upon its own knowledge reduced to writing by the Board. (4) Where the Board deems it fit to make an inquiry or to cause an inquiry to be made into any industrial company under sub-section (1) or, as the case may be, under sub-section (2), it may appoint one or more persons to be a special director or special directors of the company ....