BANK OF INDIA Vs. RAMAN MALHOTRA

JUDGEMENT

(1.) Bank of India, who is the petitioner in this case, has filed this contempt petition under Article 215 of the Constitution of India as well as under Sections 11 and 12 of the Contempt of Courts Act, 1971. The petitioner Bank has prayed for initiation of the contempt proceedings against the alleged contemnors/respondents herein. The cause for filing the present petition is the alleged willful breach, disregard, violation and disobedience of the undertakings and assurances dated 24th May and 25th May, 2000 given to this court by the respondents in CWP No.265 of 1997.

(2.) In order to appreciate the grievance of the petitioner Bank, it would be appropriate to scan through the salient facts which led to giving of the aforesaid undertakings and assurances dated 24th and 25/05/2000:

(3.) The respondent No.6, namely, M/s Usha Micro Process Controls Limited, is a company incorporated under the Indian Companies Act(hereinafter referred to as the 'respondent No.6 company'). It made a reference to Board for Industrial and Financial Reconstruction(for short ' BIFR') under the provisions of Sick Industrial Companies(Special Provisions) Act, 1985 on the ground that it was a sick company and for its rehabilitation. Order dated 29/04/1996 was passed by BIFR declaring it to be a sick company and returning the findings that the company cannot be rehabilitated. It accordingly recommended the winding up of the company. Against this order the respondent No.6 company filed appeal before the Appellate Authority for Industrial and Financial Reconstruction(for short 'AAIFR') which was also dismissed by order dated 28th October, 1996. The r respondent No.6 company and one Mr.S.Vishwanathan filed CWP No.265/97 in this court challenging the aforesaid orders of BIFR and AAIFR. It also moved CM No.429/97 for grant of ad interim orders.