9911796707
TMI Blog2009 (11) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... Reconstruction, New Delhi, rejecting the petitioner s Appeal No. 304/06. By the impugned order, the Appellate Authority has confirmed the order dated 20-9-2006 (Annexure-L) passed by the Board for Industrial and Financial Reconstruction ( BIFR ) in Case No. 321/1998 directing the petitioner-KSFC to issue a no dues certificate to respondent No. 3-a Sick Industrial Company. 2. I have heard the learned counsel appearing for the parties and perused the orders passed by the BIFR and the Appellate Authority which are produced as Annexures-L and M respectively. 3. The case of the petitioner-KSFC is that it had leased a Diesel Generator Set (3.8 MW/4750 KVA) which was purchased for Rs. 10.33 crores to respondent No. 3 Company and in that connection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to it. He submitted that the draft scheme - Annexure-R1 dated 28-9-2005 was circulated to all the concerned including the petitioner-KSFC for their consent as contemplated under section 19(2) of the SICA Act and the KSFC did not object to the proposal of one time settlement for Rs. 210 lakhs and accordingly the scheme was sanctioned as per Annexure-R2 dated 12-12-2005. 5. Before referring to section 19 of the SICA Act, it is relevant to refer to the following reasoning of the Appellate Authority. 9. .............. (iv) Thereafter, BIFR vide its order dated 28-9-2005 circulated the DRS for consent of all concerned. The DRS envisaged the settlement of the dues of KFC under an OTS of Rs. 210 lakhs. The objections to the DRS were considered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 20-9-2006 passed by BIFR......... [Emphasis supplied] 6. To examine as to whether there was deemed consent in law, it is relevant to refer to sub-sections (1) (2) of section 19 of the SICA Act which read as follows : 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 reliefs 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, instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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