2017 (3) TMI 694

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....ate Authority for Industrial Financial Reconstruction, hereinafter referred to as AAIFR, in Appeal No.19/2015, whereby the AAIFR has upheld an order of the Board for Industrial and Financial Construction, hereinafter referred to as BIFR, abating the pending reference of the petitioner. 2. The petitioner, a company incorporated under the Companies Act 1956, is engaged in the business of manufacture of textiles. The petitioner started incurring losses and its losses eroded its network, whereupon the petitioner filed a reference before the BIFR under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, hereinafter referred to as the SICA. The reference of the petitioner was registered as BIFR Case No.17/2012. 3.....

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.... 'panchnama' was prepared of the assets, which had been taken over by the IDBI. The petitioner continued to use and operate assets, particularly, the manufacturing facilities. 10. Section 17(1) of the SARFAESI Act provides a right of appeal against the illegal action under Section 13(4) of the said Act. 11. Any person aggrieved by an action under Section 13(4) of the SARFAESI Act can apply to the Debt Recovery Tribunal, having jurisdiction, under Section 17(1) of the SARFAESI Act. An appeal from an order of the DRT under Section 17(1) lies to the Debt Recovery Appellate Tribunal under Section 18 of the SARFAESI Act. 12. If the petitioner was aggrieved by the action of IDBI under Section 13(4) of the SARFAESI Act, their remedy lay u....

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....00% of secured debts of the company had taken action under section 13(4) of SARFAESI Act, on 10.02.2014 and had also taken action under section 13(4) on 10.04.2014 and had also taken possession of the assets of the company charged to the bank. Accordingly, the bench came to the conclusion that the reference case no.17/2012 M/s. gupta Synthetics stands abated in terms of third proviso of sub-section (1) of section 15 of SICA, 1985." 18. The petitioner filed an appeal against the said order dated 01.07.2015 in the learned AAIFR being Appeal No.19/2015, inter alia contending that IDBI did not have authorisation of 100% or even 75% of the secured creditors. The learned AAIFR, however, rejected the appeal of the petitioner and upheld the orde....