SETH INDUSTRIES LTD Vs. AAIFR

JUDGEMENT

(1.) THIS writ petition challenges the order dated 25th May, 1990 of the Board for Industrial and Financial Reconstruction ( in short 'BIFR') and the order in appeal dated 27th May, 1992 passed by the Appellate Authority for Industrial and Financial Reconstruction (in short 'AAIFR'). By the impugned order dated 25th May, 1990, the BIFR recommended the winding up of the petitioner company and that is the said order which was unsuccessfully challenged before the AAIFR in appeal which was dismissed by the AAIFR vide order dated 27th May, 1992, leading to the filing of the present writ petition in this Court.

(2.) DURING the pendency of this writ petition, the present application CM No. 2838/2007 was filed in this Court. The prayers in the said application are as follows:-

(3.) THE sum and substance of the averments in this application show that the petitioner company has not taken any advantage of the reference to the BIFR and all liabilities of the company have been settled and paid for and the net worth of the company has now turned positive and the party who sought a reference to the BIFR namely Canara Bank has been paid in full and final settlement of all its dues. It has also been stated that all other creditors have been paid though this statement is disputed by Ms. Gayatri Singh appearing for Woolen Kamgar Sanghatana who states that while the other creditors may have been paid, as far as her claim on behalf of Woolen Kamgar Sanghatana is concerned that has not been settled and is pending determination before the Bombay High Court. It has also been stated by the petitioner that a sum of Rs. 8.5 crores has already been transferred to the Labour authorities for distribution to the workmen pursuant to a settlement.