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Issues:
Recall of winding up order based on settlement of dues to secured creditors, Official Liquidator's report, company's financial position, powers of ex-directors post winding up, rehabilitation proposal, reconsideration by Board for Industrial and Financial Reconstruction. Analysis: The judgment involves a petition for the recall of a winding up order of a company based on the settlement of dues to secured creditors, namely State Bank of India and PICUP. The respondent-company contended that it had settled all dues and had no further liabilities towards any other secured or unsecured creditors, warranting the recall of the winding up order. The Official Liquidator's report highlighted the company's actions post-winding up, including the handover of assets and records, as well as the settlement of dues to the secured creditors. The background of the company's financial situation was discussed, including its reference under the Sick Industrial Companies (Special Provisions) Act, 1985, and the efforts made for its rehabilitation. The Board for Industrial and Financial Reconstruction found the promoters lacking in seriousness and resources to revive the company, leading to doubts about the company's reliability and the absence of a rehabilitation process. The judgment emphasized the actions taken by the ex-directors to settle the secured debts and their statement that the amounts brought by them should not be treated as a charge over the property. Reference was made to a Supreme Court case highlighting the powers of ex-directors post-winding up to protect and preserve assets for rehabilitation purposes. Considering the developments and the settlement of secured debts, the court recalled the winding up order and remitted the matter to the Board for Industrial and Financial Reconstruction for reconsideration. The company was directed to submit a fresh rehabilitation proposal, and the Board was tasked with determining the company's financial capacity to survive independently. The Board was instructed to decide on the matter expeditiously, preferably within two months of the order. In conclusion, the winding up order was recalled, and the case was referred back to the Board for Industrial and Financial Reconstruction for further consideration regarding the company's rehabilitation and financial viability post-settlement of secured debts.
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