HINDON RIVER MILLS LTD Vs. IFCI LTD

JUDGEMENT

(1.) Vide impugned judgment and order dated 21.01.2011, WP(C) No.14999/2006 filed by the appellant 'Hindon River Mills Ltd.' (hereinafter referred to as the 'Company') has been dismissed by the learned Single Judge holding:-

(2.) Relevant facts to be noted are that the 'Company' set up a manufacturing unit in Dasna, District Ghaziabad, in the State of Uttar Pradesh and availed loan/credit facilities from (i) IFCI Ltd., (ii) EXIM Bank Ltd., (iii) Punjab National Bank, (iv) Indian Bank, and (v) State Bank of India. The first two creditors had a first charge on the land, building, plant and machinery of the 'Company' and the next three creditors had a second charge thereon.

(3.) The 'Company' prospered from the year 1972 onwards when it was incorporated but saw turbulence after years of prosperity, requiring the 'Company' to file a reference under Section 15 of SICA 1985, before BIFR. Vide order dated 08.08.2005 the 'Company' was declared sick under Section 3(1)(o) of SICA 1985, and simultaneously vide said order, IFCI Ltd. was appointed as an operating agency under Section 17(3) of SICA 1985 with a direction to prepare the rehabilitation scheme for the 'Company', taking the cut-off date 30.09.2005.