9911796707
TMI Blog1999 (10) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... Industrial and Financial Reconstruction (BIFR) has recorded its opinion under section 20(1) of the said Act that it is just and equitable that Varsha Spinning Mills Ltd. be wound up and the matter be referred to this Court for opinion and for further action in accordance with law. It may be pertinent to mention that on 25-11-1997, the BIFR directed the promoters to renegotiate the one time settlement (O.T.S.) with the IDBI. They arrived at a negotiated settlement and the promoters are directed to deposit a sum of Rs. 1 crore in an interest bearing 'No Lien A/c' with IDBI in the company's name within two weeks. The BIFR further observed that if the company/present promoters deposited Rs. 1 crore as aforementioned, in that event the Bench wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1997. The operating agency was directed to have a Techno Economic Viability Study of the company. 4. The company had submitted its rehabilitation scheme on 4-2-1997. It envisaged a total cost of Rs. 50.47 lakhs including capital expenditure of Rs. 40 lakhs. The Scheme was based on normal reliefs and concessions. The cost of scheme was to be met entirely by way of 'promoters' contribution. The operating agency reported before the Board that the projections were based on rather optimistic assumptions. The repayment period was taken as ten years. The dues of the financial institutions were understated. The total term loan dues of the financial institutions as on 31-12-1996 stood at Rs. 1,377.34 lakhs. That apart there was liability towards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany and direction to deposit Rs. 1 crore in a 'No. lien account' has not been complied with. The IDBI has filed a suit in September, 1995. The principal amount due to IDBI is approximately Rs. 2 crores and as no concrete proposal has been submitted by the appellant. It may be pertinent to mention that representative of the Bank of Baroda submitted that appellant has entered into a compromise with the Bank and as per the compromise, the appellant had to deposit Rs. 74.53 lakhs as against the total amount of Rs. 90 lakhs and nothing has been paid so far by the appellant. The AAIFR observed that sufficient opportunities were afforded by the Court with a view to rehabilitate the appellant-company and all efforts went in vain and in this view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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