9911796707
TMI Blog1987 (11) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... b)(c) of the Act and for the appointment of the Receiver over the same. 3. According to the petitioner No. 1, the respondent No. 1 as an incorporated company, on 7-11-1972 took a loan of ₹ 52 lacs for its project for manufacture of mild steel ingots in the State of U.P. The said loan was taken on the terms and conditions contained in the Loan Agreement dt. 5-7-1973. It was entered into between the petitioner No. 1 and respondent No. 1. A security for the said loan together with interest etc. was agreed to and a Deed of Hypothecation was also made in favour of petitioner No. 1 by the respondent No. 1. Similarly a further security for the said loan in favour of petitioner No. 1 was made by deposit of title deeds of the immovable prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for realisation of the amount which the petitioner No. 1 is entitled even if the entire property is sold (this part of the averment has been resiled by the other side). It is in the light of the present petition, a prayer for ad interim order was made for passing the order under Section 30(3) of the Act. 4. After hearing the learned counsel for the petitioners this Court on 5-10-1987 passed 'the necessary orders in terms of prayer (d) of the petition and further called upon the respondent No. 1 to show cause why an order be not granted as sought in terms of prayers (b) and (c). It is after notice given to the other side and after their appearance and after the counter-affidavit being filed, the present application has come up befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I.A.S. Officer concerned of the rank of Resident Commissioner in New Delhi or a person of a senior technical manager. The petitioner No. 1 has also been nominating one of officers to represent the Board of Directors of the Company and is presently represented by its Assistant General Manager. 6. There is no dispute in support of the loan being advanced or breach having been committed in terms of the loan agreements. The main contention raised on behalf of the petitioners is that in terms of Section 30(3) of the Act the interim order as contemplated therein if conditions as stipulated are satisfied, should be passed. 7. It has been urged that Section 30 speaks about where an industrial concern is in breach of any agreement, makes any d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Board of Industrial and Financial Reconstruction, New Delhi, that the proceedings for the enquiry had started by assigning our reference to one of the Benches. It is on this basis an argument is raised that actually since enquiry is pending under Section 16, no further proceedings be gone into. 9. Learned counsel for the petitioners vehemently urged that mere registration of an application by the Registrar on a reference made under Section 15 of the said Act would not constitute an enquiry being pending and, therefore, this court, is precluded from passing the necessary orders in terms of Section 30(3) of the aforesaid Industrial Finance Corporation Act. In the rejoinder-affidavit, the averment made in paragraph No. 10 of the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as sick unit is not acceptable and thus reject the application but it cannot be said that Board has discretion not even to enquire specially after reference being registered and after nominating a Bench of the Board. The word 'may' only qualifies the word 'make' such inquiry is mandatory. In fact Sub-section (2) of Section 16 of the Act lays down that the enquiry may be made either by Board or its agency or it may require any operating agency to enquire into and make a report. 12. Even if in law if it could be argued that there is some gap between the actual holding of the enquiry and registration, it would not be proper for this Court on the facts and circumstances of this case to exercise its powers specially keeping i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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