TaxTMI 
TaxTMI 
2004 (1) TMI 382
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....al Provisions) Act, 1985 (for short, 'the SICA') on the basis of its Annual Statement of Accounts as on 31st March, 2001. As against the net worth of the Company which is Rs. 231.60 lakhs, its losses have amounted to Rs. 422.29 lakhs. The Board of Directors of the Company passed a resolution on 3rd September, 2001 to approach the Board of Industrial and the Financial Reconstruction ('BIFR' in short). The accounts were settled and approved by the Board of Directors on 27th September, 2001. The reference was filed and received by the BIFR on 13th November, 2001. The BIFR, by its order dated 5th July, 2002, took a view that the reference was beyond the limitation of 60 days as provided under section 15(1) of the SICA. The BIFR counted the peri....
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....ty days after it has formed such opinion, make a reference to the Board for the determination of the measures which shall be adopted with respect to the company: Provided further that no reference shall be made to the Board for Industrial and Financial Reconstruction after the commencement of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where financial assets have been acquired by any securitisation company or reconstruction company under sub-section (1) of section 5 of that Act : Provided also that on or after the commencement of the Securitisation and Reconstruction and Financial Assets and Enforcement of Security Interest Act, 2002, where a reference is pending before the....
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....y industrial company has become a sick industrial company- (a )upon receipt of a reference with respect to such company under section 15; or (b )upon information received with respect to such company or upon its own knowledge as to the financial condition of the company. 33. Penalty for certain offences.-(1) Whoever violates the provisions of this Act or any scheme, or any order of the Board, or the Appellate Authority and whoever makes a false statement or gives false evidence to the Board or the Appellate Authority, shall be punishable with simple imprisonment for a term which may extend to three years and shall also be liable to fine." 4. Mr. Anturkar, learned Counsel appearing for the Petitioner, submitted that as the preamb....
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....nt will follow as provided under that section. It cannot, by any stretch of imagination, lead to the dismissal of the reference itself. He submitted that the aims and objectives of this Act, as reflected in the preamble, ought to be kept in mind by the BIFR as well as by the Appellate Authority. They have erred in ignoring the same and, therefore, both the orders are erroneous in holding the period under section 15(1) as the period of limitation. Mr. Anturkar, therefore, submitted that these orders ought to be interfered with, set aside and the BIFR be directed to register the reference and proceed therewith. 5. Mr. Anturkar, in this behalf, has relied upon a judgment of a learned Single Judge of this Court (Mrs. Sujata Manohar, J. as He....
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....ragraphs 13 and 17 to 19 that what was material was to see as to where the ultimate effect of the impugned action of the Government Authority is felt. In the facts of the present case, the ultimate effect will be felt in Pune and not in Delhi and, therefore, the authority relied upon does not assist the Respondents-Banks. The cause of action leading to the original proceedings and the one to the present Petition cannot be spilt in the manner in which it is sought to be canvassed by Mr. Mehta. The cause of action leading to the present original proceedings was sickness of the Company and it is the same cause which has been subsequently agitated in the present Writ Petition. The reliance on the aforesaid judgment is, therefore, misplaced. ....
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....ing of a suit. This Statute is an enactment by way of a rehabilitation measure and under the Act, a quasi Judicial Authority and the Appellate Authority have been created for that purpose. The duty is cast on the Board of Directors of the Company to approach the Authority when the Company becomes sick and, therefore, analogy of filing of a suit or remedy getting extinguished cannot be brought into. 10. As noted above, under section 16(1)(b) of the SICA, the BIFR itself is empowered to take cognizance of the problem and register reference on its own. There is no period of limitation therein. There is no period of limitation when it comes to the reference at the instance of Central Government, Reserve Bank, State Bank or Public Financial I....