2008 (11) TMI 624

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....ompany. Mr. Khanna, learned counsel appearing for the petitioner, has contended that the petitioner has already settled with all the creditors and has made the payment in terms of the directions issued by BIFR except with the operating agency. In this case operating agency is Haryana Financial Corporation. As a matter of fact when this writ petition had come up AAIFR was not functioning and, therefore, certain orders were passed by this court. On August 6, 2003 this court had directed the petitioner to deposit a sum of Rs. 5,00,000 and the same was deposited. In this matter a very short controversy has arisen on the basis of which BIFR has pronounced the impugned order. In terms of the BIFR Scheme, the petitioner has satisfied all the....

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....eration to the arguments advanced by learned counsel for both the parties. We feel that the matter has been unnecessarily dragged in view of the stiff attitude of HFC. It is mandatory on the part of the BIFR to give direction under section 19 of the Sick Industrial Companies (Special Provisions) Act, 1985 and that it cannot be contended as was sought to be established by learned counsel for the respondents that the BIFR has no jurisdiction to issue such directions. It will be appropriate at this stage to reproduce section 19 of the said Act: "(3) Where in respect of any scheme the consent referred to in sub-section (2) is given by every person required by the scheme to provide financial assistance, the Board may, as soon as may be, sanct....

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....r, again a direction was issued to the Haryana Financial Corporation to prepare a rehabilitation scheme as per RBI guidelines on the basis of available information and submit their report to the Board after holding a joint meeting. On January 16, 2002 BIFR again directed the Haryana Financial Corporation to submit status report along with draft rehabilitation scheme based on the proposal submitted by the company within one week so that the same could be circulated for consent of all the concerned. In the same order it was noticed by BIFR that the petitioner has already entered into one time settlement with Haryana State Industrial Development Corporation and had also paid the dues of State Bank of Patiala. On February 15, 2002 BIFR expresse....

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.... financial assistance shall designate by mutual agreement a financial institution and a bank from amongst themselves which shall be responsible to disburse financial assistance by way of loans or advances or guarantees or reliefs or concessions or sacrifices agreed to be provided or granted under the scheme on behalf of all financial institutions and banks concerned." From the wording and language of the SICA, it is clear that where the object is to prevent sickness in an industrial company or to ameliorate its lot and other measures are required to be taken in relation to a sick industrial company, the reliefs and concession or sacrifices can be directed by the BIFR to the Central Government, State Government, Banks, institutions and fi....