ALCATEL-LUCENT INDIA LTD Vs. USHA INDIA LTD

JUDGEMENT

(1.) The petitioner feels aggrieved by the action of the respondent Usha India Limited in making repeated references before the BIFR and appeals therefrom before the AAIFR, even when previous references made by the petitioner were rejected. The grievances of the petitioner is that it amounts to continuous and systematic abuse of process resorted to by Usha India limited with the sole motive of delaying and defeating the rights of its creditors. Usha has been filing repeated references before the BIFR and getting for itself protection of the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 which it is otherwise not entitled to. To highlight the purported mala fides and abuse on the part of the Usha, the petitioner traced the following events in its petition.

(2.) On 30.7.2002 Usha filed its first Reference before BIFR which was registered as Reference no. 117/2002, claiming losses of Rs. 1015.24 Crores. In just three months, the said Reference was rejected. The BIFR, vide a detailed order recorded that far from losses, the net worth of Usha is positive by Rs. 800.73 Crores. The following findings of the BIFR's order dated 28.10.2002 are relevant:

(3.) On 12.03.2003, Usha filed an appeal against the aforesaid order dated 28.10.2002 before the AAIFR. On 4.8.2006 i.e. after about three and half years, the above appeal (appeal against the first reference rejection) was finally disposed off by the AAIFR, which affirmed that there has been manipulation of accounts by Usha in order to establish sickness. Some portions of the AAIFR order which may be noted are:-