9911796707
TMI Blog2008 (11) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... al company. The whole object of SICA is to arrest industrial sickness in the country. Therefore, to say, that BIFR has no jurisdiction to issue such directions is totally misplaced. The directions of BIFR while in exercise of its powers under section 19 of the Act are mandatory, more so, when against a loan of ₹ 20 lakhs, the petitioner has paid ₹ 40 lakhs and is still prepared to settle in terms of RBI guidelines as per directions of BIFR. The dragging of matter by the respondent is totally inconsistent and contrary to the object and the scheme envisaged in SICA. We find no infirmity in the order of the BIFR directing Haryana Financial Corporation to settle the OTS in terms of guidelines issued by BIFR under section 19 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s evident from the various orders passed by BIFR itself except the respondent-Haryana Financial Corporation. On August 10, 2004 it was brought to our notice that the total loan which was taken by the petitioner was Rs. 20,00,000 against which a sum of Rs. 40,00,000 has already been paid by the petitioner to the respondent. BIFR from time to time has issued directions under section 19 of the SICA to the operating agency, i.e., Haryana Financial Corporation that they may settle the amount of dues in terms of RBI guidelines. On the other hand, the stand of the Haryana Financial Corporation has been that they are not governed by the RBI guidelines as they have formulated their own guidelines. As stated above, the petitioner has deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on and from the date of such sanction the scheme shall be binding on all concerned. (3B) The financial institution and the bank designated under subsection (3A) shall forthwith proceed to release the financial assistance to the sick industrial company in fulfilment of the requirement in this regard. (4) Where in respect of any scheme consent under sub-section (2) is not given by any person required by the scheme to provide financial assistance, the Board may adopt such other measures, including the winding up of the sick industrial company, as it may deem fit. The whole purpose of the SICA is to rehabilitate a sick company. In case where an operating agency is to take protection of SICA for bona fide purposes with the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n February 19, 2003 BIFR directed the petitioner to deposit a sum of Rs. 1.37 lakhs with HFC with the direction to HFC to follow OTS in terms of RBI guidelines; yet nothing was done. 19. Rehabilitation by giving financial assistance. (1) Where the scheme relates to preventive, ameliorative, remedial and other measures with respect to any sick industrial company, the scheme may provide for financial assistance by way of loans, advances or guarantees or relief or concessions or sacrifices from the Central Government, a State Government, any scheduled bank or other bank, a public financial institution or State level institution or any institution or other authority (any Government, bank, institution or other authority required by a scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to remove the sickness of such industrial company. The whole object of SICA is to arrest industrial sickness in the country. Therefore, to say, that BIFR has no jurisdiction to issue such directions is totally misplaced. The directions of BIFR while in exercise of its powers under section 19 of the Act are mandatory, more so, when against a loan of Rs. 20 lakhs, the petitioner has paid Rs. 40 lakhs and is still prepared to settle in terms of RBI guidelines as per directions of BIFR. The dragging of matter by the respondent is totally inconsistent and contrary to the object and the scheme envisaged in SICA. The reliance placed by learned counsel for the respondent in M.M. Accessories case [2002] All LJ 967 has no application to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
