VOLTAS LTD Vs. STATE OF A P

JUDGEMENT

(1.) These appeals are against the judgment of the Andhra Pradesh High Court dated 8/6/2001.

(2.) Briefly stated, the facts are as follows: in Andhra Pradesh, there was a company known as "hyderabad Allwyn Ltd. " In this Company, the Government of Andhra Pradesh was a major shareholder. The Company suffered huge losses and became a sick company. Therefore, the matter was taken up before the Board for Industrial and Financial Reconstruction (BIFR).

(3.) While the matter was before BIFR, negotiations took place with the appellants for the purpose of reviving at least the Refrigeration Department of that Company. A memorandum of understanding was entered into on 28/3/1993, which, inter alia, provided as under: