CEMENT LTD Vs. GANNON DUNKERLEY AND CO LTD

JUDGEMENT

(1.) M/s. Jaipur Udyog Ltd. , respondent No. 9, ("the said Company" for short) was incorporated in May, 1948 as a private limited company under the management of the Dalmiya Group and was converted into a public limited company in 1955. The management of the Group changed hands in 1958. The company is stated to have started incurring losses from 1971 onwards and an application was filed under section 15 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "sica") in 1983-84. The Government of Rajasthan and the financial corporations having interest in the Company also made a reference to the Board for Industrial and Financial Reconstruction ("bifr" for short) in 1987 and the BIFR came to a conclusion that the said Company had become a sick industrial company under SICA in terms of the Order dated 26. 08. 1987.

(2.) THE Scheme for rehabilitation for the said Company was directed to be formulated on 17. 09. 1987 with Industrial Investment Bank of India ("iibi" for short) being appointed as the operating agency. The Scheme for revival was prepared but the BIFR came to the conclusion that it was not possible to revive the said company and was thus liable to be wound up.

(3.) THE winding up of the said Company was opposed by filing objections against the winding up order and a fresh rehabilitation Scheme was approved on 21. 04. 1992 by the BIFR. In terms of this new Scheme labeled as SS-92 a new management of R-1 was introduced in the said Company. The progress of the said Scheme was reviewed from time to time.