9911796707
TMI Blog2000 (7) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... Reconstruction (BIFR) under section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 ( the Act ) after hearing on certain dates, BIFR passed an order on 16-11-1999, inter alia, with the following directions : "Therefore, IFCI is appointed as Coordinating Agency under section 16(2) of the Act. CA would appoint a Chartered Accountant for conducting SIA and report in 8 weeks after holding a joint meeting of all secured creditors and company/promoters. Till then out orders on declaring the company as sick will continue to be reserved and after examining SIA report; the Bench would consider passing further appropriate orders in this case." 3. Reports of Chartered Accountants were received on 27-12-1999 and 31-1-2000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed before the BIFR for the period ending on 31-3-2000, even if there was any deficiency so far as the reference relatable to the period ending 31-3-1999 is concerned, that is of no consequence. 5. In order to appreciate rival submissions, it is necessary to take note of the provisions, which are relevant for the present case : " Section 16 of the Act Inquiry into working of sick industrial companies - (1) The Board may make such inquiry as it may deem fit for determining whether any industrial company has become a sick industrial company ( a )upon receipt of a reference with respect to such company under section 15; or ( b )upon information received with respect to such company or upon its own knowledge as to the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons as it may consider necessary and ask them to submit report or furnish any information : Provided that if the report or information so obtained or any part thereof is brought on record of any inquiry and is proposed to be relied upon by the Board for forming its opinion or view, the party or parties to the inquiry shall be given a reasonable opportunity of making his or their submissions with respect thereto." 6. A bare reading of Regulations 21 40, which appear in Chapter IV and Chapter IX respectively, make it clear that after certain information/report comes to the knowledge of BIFR, it is required to grant an opportunity to the affected person before making use of that information/report. That is in line with the requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... morandum and articles of association of the industrial company or any other instrument having effect under the said Act or other law; no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof (and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority." Above being the position, filing of reference for the subsequent period in ter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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