9911796707
TMI Blog2017 (12) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... ate applicant will become positive and during such period further direct to the Additional Commissioner, Commercial Taxes, Govt. of West Bengal Kolkata not to initiate any recovery proceedings against the corporate application for the demands of the period from 2010-11 to 2014-15. In addition to this, the petitioner sought relief to settle the Suit No. 7436/1983 in Bombay City Civil Court in regard to Mangaldas & Co. v. Associated Pulp & Paper Mill Ltd. and Hada Textile Industries Ltd. A further prayer has been made granting stay/settle the Suit No. 1325/ 1980, 1337/ 1980, 1338/ 1980 and 322/ 1981 pending before the Hon'ble High Court, Bombay regarding Cotton Corp. of India v. Hada Textile Industries Ltd. The Petitioner has sought furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed MDRS vide letter no.309/2013-14 dated 24/3/2014 to the BIFR and the copy of the letter was sent to Gov. of West Bengal and IFCI monitoring agency. Copy of the letter dated 24/3/2014 along with MDRS is annexed with the petition as Annexure-4. 6. It is further stated in the application that the scheme above will be ending on 31/3/2017 and the net worth of the corporate applicant is still negative which is the audited accounts for the financial year ended as on 31/3/2016. Copy of the verified statement as on 31/3/2016 is annexed with the application as Annexure-5. 7. Petitioner has further stated that the Sick Industrial Companies (Special Provisions) Repeal Act, 2003, hereinafter referred to as SICA Repeal Act, 2003 under Sec. 4(b) as am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tcy Code, 2016: Provided further that no fees shall be payable for making such reference under Insolvency and Bankruptcy Code, 2016 by a company whose appeal or reference or inquiry stands abated under this clause." By the above notification, it is clear that all the BIFR matters stand abated by notification dated 28/5/2016 except the scheme sanction which has been saved regarding Sec.5 of the SICA Repeal Act, 2003 and, as such, the sanction schemes are continued to be binding. It is further contended vide notification dated 25/11/2016 has enforced the SICA Repeal Act, 2003 with effect from 1/12/2016 and accordingly, BIFR has been dissolved. Notification dated 25/11/2016 provides that SICA Repeal Act, 2003 in the exercise of the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Industrial Companies (Special Provisions) Repeal Act, 2003 provides that any scheme sanctioned under sub-section (4) or any scheme under implementation under sub-section (12) of section 18 of the repealed enactment i.e., the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) shall be deemed to be a scheme under implementation under section 424D of the Companies Act, 1956 (1 of 1956) and shall be dealt with in accordance with the provisions contained in Part VIA of the Companies Act, 1956; And whereas, section 424D of the Companies Act, 1956 provided for review or monitoring of schemes that are sanction or are under implementation." 9. By the above clarification, proviso to Sec. 4 has been inserted which provides that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al dated 13/4/2017. 13. After issuing of government notification removal of difficulties dated 24/5/2017 petitioner again filed this petition for extending the term of sanction scheme SS-04. Petitioner has emphasised the fact that Sick Industrial Companies (Special Provisions) Act, 1985, Sec. 18 sub-clause 9 was relating to the Boards power to review the scheme of any difficulties arises in giving effect to the provision of sanction of the scheme. 14. Petitioner has further contended that under Sec.262 sub-clause 6 of the Companies Act, 2013 also provides that "The Tribunal may review any sanctioned scheme and make such modifications, as it may deem fit, or may by order in writing direct company administrator, to prepare afresh scheme pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be deemed to be an approved resolution plan under sub-section (1) of section 31 of the I & B Code, 2016. 18. The scheme sanctioned by the BIFR shall be deemed to be approved resolution plan under Sec. 31(l) of I & B Code. But it is specifically mentioned in the said clause that the scheme shall be dealt with the proviso of part 2 of the I & B Code. 19. It is pertinent to mention that part 2 of the I & B Code 2016 there is no such power which empowers adjudicating authority to review the already sanction scheme under sub-section (1) of Sec. 31 of the I & B Code. Since the petitioner has sought an extension of the sanctioned scheme, given the modification of MDRS already submitted before the BIFR. It is also to be pointed out that thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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