TaxTMI 
TaxTMI 
2010 (9) TMI 1170
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....cial Reconstruction (AAIFR) upholding the order dated 22.3.06 passed by the Board for Industrial and Financial Reconstruction (BIFR), whereby the petitioner company has been discharged from the purview of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) on the ground that its net worth turned positive, although, the sanctioned scheme had not yet been fully implemented and the petitioner company had not got the necessary concessions as envisaged from the Govt. of Rajasthan under the sanctioned scheme. 2. The petitioner (earlier known as M/s. Paliwal Mini Steels (I) Limited) M/s. Synergy Steels Limited was registered under Section 15 of SICA by the order dated 4.9.1990 passed by the BIFR. The draft scheme after being circu....
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.... the Company before the Registrar of Companies are nothing but the consequential to the orders of discharge. So far as other order relating to the un-implemented provisions of SS-02 are concerned, these provisions cannot be implemented by the concerned agencies any more as the company has been discharged from SICA on account of the fact that it is no more a sick company as its net worth has turned positive. So far as the pendency of the Writ Petition before the Rajasthan High Court is concerned, it is the settled position in the law that if any order is passed by the High Court of Rajasthan in the Writ Petition, it shall be binding on the parties." 6. Before us, the learned counsel for the petitioner argued that it would result in an ....
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....mentation can result in absurdity, let us take the example where under a sanctioned scheme a company takes all the benefits of reliefs and concessions but does not perform the obligations as envisaged in a sanctioned scheme. Surely, this is impermissible. If this is impermissible, then, it is equally impermissible that if the sick company perform its obligations, then, it should be deprived of its rights under the sanctioned scheme. Merely, because a writ petition has been filed in the Rajasthan High Court would not mean that the proceedings cannot continue under SICA. May be the petitioner was not properly advised in filing of the writ petition or it took that action out of abundant precaution though it need not have, yet it does not mean ....