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Issues involved:
The petitioner challenges the order discharging the company from the purview of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) due to positive net worth despite incomplete implementation of the sanctioned scheme and lack of necessary concessions from the Government of Rajasthan. Details of the judgment: 1. The petitioner company, previously known as M/s. Paliwal Mini Steels (I) Limited, was registered under SICA and had a sanctioned scheme (SS-02) implemented, resulting in a positive net worth by the financial year ending on 31.3.05. 2. The Board for Industrial and Financial Reconstruction (BIFR) discharged the company from SICA as it was no longer considered a sick industrial company. 3. The petitioner was aggrieved as the concessions and reliefs under SS-02 were not granted by the Government of Rajasthan, leading to a writ petition before the Rajasthan High Court. 4. The Appellate Authority for Industrial and Financial Reconstruction (AAIFR) upheld the discharge, stating that unimplemented provisions of SS-02 could not be enforced after the company's discharge from SICA due to positive net worth. 5. The petitioner argued that the sanctioned scheme must be implemented in its entirety to prevent a sick company from losing benefits, citing Section 18 of SICA and a Supreme Court judgment emphasizing the authority's role in scheme implementation. 6. The High Court agreed with the petitioner's contentions, emphasizing that a sanctioned scheme must be implemented fully to avoid absurd outcomes where a company gains benefits without fulfilling obligations. 7. Citing the Supreme Court's precedent, the High Court quashed the AAIFR and BIFR orders, directing the matter to be listed before BIFR for monitoring and complete implementation of SS-02. 8. The writ petition was allowed, with each party bearing its own costs, and no further directions were deemed necessary post the petition's disposal.
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