KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVELOPMENT CORPORATION LIMITED Vs. SHIVMONI STEEL TUBES LIMITED

JUDGEMENT

(1.) Respondent No. 1 M/s. Shivmoni Steel Tubes Limited became a sick unit,and efforts for rehabilitation of the said sick unit not having met with anysuccess in spite of reference to Board for Industrial and FinancialReconstruction ('BIFR' for short), and Respondent No. 3Industrial Credit and Investment Corporation of India('ICICI' for short) having been appointed as operatingagency, Company Petition No. 157 of 1992 was registered for winding up thecompany on an order in that regard being passed by BIFR. An appeal to theappellate Authority for Industrial and Financial Reconstruction (AAIFR, forshort) as against the said order of the BIFR also came to be dismissed, andwhen the said order of AAIFR was communicated to the Court, Company PetitionNo. 49 of 1994 was registered. Both the company Petitions were clubbed togetherand notices issued.

(2.) Among others, the secured creditors of the Company under liquidation are the present appellant M/s. Karnataka State Industrial Investment and Development Corporation Limited (KSIIDC), Respondent No. 2 Karnataka State Financial Corporation (KSFC), Respondent No. 4 Industrial Development Bank of India (IDBI) Respondent-5 Canara Bank and Respondent No. 6 Syndicate Bank. The said Canara Bank and the Syndicate Bank filed company Application No. 153 of 1995 seeking permission to sell the hypothecated plantand machineries. The Secretary of the Employees' Union of the Company also filed a company Application No. 150 of 1995 pleading the cause of the 300 workmen of the company who were to get about Rs. 80 lakhs.

(3.) On 8-9-1995, the Court passed an order to wind up the Company in view of the orders passed by BIFR and AAIFR.