AVS INDUSTRIES LIMITED Vs. AAIFR

JUDGEMENT

(1.) Since a short point is involved, with the consent of counsel for parlies, this petition is taken up for final hearing.

(2.) Controversy in this petition lies within a very narrow compass, to appreciate which, a brief reference to factual aspects would suffice: Petitioner No.l filed an application before Board lor Industrial and Financial Reconstruction (BIFR in short) Under Section 15(1) of the Sick Industrial Companies (Special provisions) Act, 1985 (hereinafter referred to as the "Act") After hearing on certain dates. BIFR passed an order on loth November, 1999. inter alia, with the following directions:

(3.) Reports of Chartered Accountants were received on 27th December, 1999 and 31st January, 2000. A meeting was convened by the Industrial Finance Corporation of India (IFC1 in short) on 3rd February, 2000. On that date respondent No.4-Punjab National Bank (PNB in short) wanted certain information and time to submit its further views. On 4th February, 2000, IFC1 sent its report to the BIFR. Though there is no specific material in that regard, it is PNB's stand that on 24th February, 2000. PNB had submitted its report, which was in line with the report of 1FCI before BIFR. On 25th February, 2000. BIFR passed a final order holding that petitioner No. 1 was not a sick company within the meaning of the Act and reference was not accepted. Matter Was carried in appeal before Appellate Authority for Industrial and Financial Reconstruction (AAIFR in short). Specific stand was taken that there was non-compliance with the requirements of Regulations 21 and 40 of the BIFR Regulations, 1987 ('Regulations' in short). However AA1FR did not consider that aspect and on merits held that conclusions of BIFR are in order.