TaxTMI 
TaxTMI 
TaxTMI 
2019 (1) TMI 927
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....dustrial and Financial Reconstruction (BIFR) under section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The company was declared as a sick industrial company. The company submitted proposal for rehabilitation under section 17(3) of the Act. The case was numbered as BIFR Case No. 266 of 1987. 2. On May 25, 2012 the BIFR passed the order and sanctioned the rehabilitation scheme of the company. This application is filed by the company under section 31(2) of the Insolvency and Bankruptcy Code, 2016, stating that, since the scheme sanctioned by the Board is the resolution plan to be treated under section 31 of the Insolvency and Bankruptcy Code, it may be declared that all stakeholders in the company including....
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....cannot be now implemented. This application being not maintainable and the same may be rejected with costs. 4. I have gone through the record and proceeding. I have heard learned counsel appearing for the applicant-company as well as learned counsel appearing for the respondent-Board. There is no dispute relating to the following facts. 5. M/s. Harry Refractory and Ceramic Works P. Ltd., the applicant company had filed BIFR case bearing No. 266 of 1987 before the BIFR for sanction of rehabilitation scheme. On April 7, 1988 the BIFR declared the company to be sick unit. On August 22, 1998 the BIFR ordered that the company to be wound up. The company filed the appeal before the AAIFR but the Appellate Authority confirmed order of the BIFR. ....
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....me. The application was pending for consideration of the Board. However, on November 25, 2011 the Government of India dissolved the BIFR by virtue of enactment of the Insolvency and Bankruptcy Code. This Adjudicating Authority set up to look into pending proceedings before the then BIFR. 10. According to the applicant-company, the scheme which was approved by the BIFR has to be implemented as if its resolution plan approved under the Insolvency and Bankruptcy Code. All stakeholders are bound by the plan. 11. The Central Government made order to remove difficulties about the schemes sanctioned by the BIFR. In the Eighth Schedule to the Insolvency and Bankruptcy Code, the amendment is made in section 4, clause (b) after second proviso and i....
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....me cannot be implemented. I have gone through the scheme. Paragraph 12.3 of the scheme deals with arrears of electricity charges. It is stated that, "State Electricity Board/Power Supply Company to waive penal interest, compound interest, liquidated damages charged or chargeable from the company up to the date of sanction of scheme by the BIFR". The applicant stated in the application that on March 31, 2013 the corporate applicant had filed application by Misc. A. No. 358 of 2013 with prayer to deregister its case from the SICA. On July 23, 2013 the BIFR passed the order to de-register the applicant's case holding that it was no more sick company but directed to implement the unimplemented portion of the scheme and pass the order of der....
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....ry of Rs. 5,00,000 (rupees five lakhs only) from the respondent-Board. It is seen from the record that amount of Rs. 5,00,000 (rupees five lakhs only) was deposited by the company pending its appeal against disconnection of electricity supply. It is say of the company that the amount was deposited under protest. However, the documents on record do not support the company's above contention. Order of the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), New Delhi in Appeal No. 94 of 2010 dated April 30, 2010 is on record. It is clearly mentioned that, "Learned counsel for the respondent-company (the appellant herein) undertakes that the company will deposit sum of Rs. 5,00,000 with the appellant (i.e., the responde....