FOREMOST INDUSTRIES INDIA LIMITED Vs. AAIFR

JUDGEMENT

(1.) Though various points have been urged in this writ application, in essence, the issue to be adjudicated is whether the Board for Industrial and Financial Reconstruction (in short 'BIFR') can proceed or not when either a petition for winding up of a company is pending or an order of winding up has been passed under the Companies Act, 1965 (in short 'Companies Act')? Incidentally further, question to be adjudicated is whether appointment of an official liquidator/liquidator under the Companies Act would take away jurisdiction of BIFR established under the Sick Industrial Companies (Special Provisions) Act, 1985 (in short the 'Act') to deal with a reference made under Section 15 of the said Act?

(2.) Undisputed factual position is that BIFR refused to entertain application for reference made by the petitioner under Section 15 of the Act, on the ground that an official liquidator had been appointed, in terms of the consent arrangement made between the parties. The observations in this regard made by the BIFR are in the following terms:

(3.) The question, whether the order of winding in respect of a company takes away the jurisdiction of the BIFR, was examined by the Apex Court in M/S. Rishab Agro Industries Ltd. v. P.N.B. Capital Services Ltd., 2000 (4) Supreme 632. It was inter alia observed as follows: