2014 (2) TMI 1253

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....of events as stated are that the respondent was declared as a sick industrial company, in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'SICA', for brevity), as per the order dated 1-12-2005. The Bench appointed the State Bank of Mysore as the Operating Agency under Section 17(3) of the SICA. Despite the direction and opportunity to the Operating Agency, there were no acceptable offers received in response to the advertisement in view of which, the BIFR permitted all secured creditors to file/continue the recovery proceedings/suit against the company on condition that the decree obtained would not be executed without prior permission of the Bench, apart from other direct....

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....ed debt of the State Bank of Mysore which was assigned to the Asset Reconstruction Company was duly settled and a 'No due certificate' dated 2-9-2010 was issued, a copy of which is produced. The State Bank of Mysore had claimed a sum of Rs. 1,79,000/-, which has been paid as on 10-1-2013 towards advertisement charges. The KSFC has also accepted a one-time settlement and a clearance certi-ficate has been issued pursuant to closure of the loan account dated 26-7-2012, a copy of which is produced. The Provident Fund dues in a sum of Rs. 7.24 lakhs have been cleared. However, insofar as the penalty of Rs. 8 lakhs is concerned, it is claimed that there is a negotiation under progress and it is likely that a decision would be taken by the auth....