R R KABELS LTD Vs. AAIFR

JUDGEMENT

(1.) This order shall dispose of three Writ Petition No.942/2007 (M/s R.R.Kabels Ltd. Vs. AAIFR & Ors.), WP(C) No. 2865/2007 (M/s Pegasus Assets Reconstruction Pvt. Ltd. Vs. AAIFR and Ors.) and WP(C) No.2880/2007 (The Indian Kabels Workers Union Vs. AAIFR & Ors.). All these three writ petitions are challenging the same order dated 22nd September, 2006 passed by AAIFR though for different reasons. By virtue of the said order, AAIFR has passed the following directions:-

(2.) The petitioner M/s R.R.Kabels Ltd.had challenged the order dated 12th April, 2006 passed by the BIFR in AAIFR permitting all the above mentioned four parties to submit the revised proposal to the OA on the ground that it is the scheme for rehabilitation of the sick company was superior as compared to the schemes given by Peagasus Assets Reconstruction Pvt. Ltd. and SJIL and LLJ because Peagasus was an asset reconstruction company and could not run the sick company in view of the bar contained in Section 10(2) of the SICA and the guidelines framed by the RBI. It had also failed to deposit the promoters contribution in the no lien account while as the petitioner had already deposited 25 crores and further made arrangement for another 35 crores of investment to revive the sick company. Similarly, the schemes of SJIL and LLJ also did not conform to this direction of the BIFR and accordingly these schemes could not be considered. The petitioner had further contended that it had already purchased 85% of the secured credit, signed MOU with Union not to retrench any employee and the direction given by the BIFR for submission of the fresh scheme to be given by these four parties would further cause delay in the rehabilitation of the sick company which has already been lying closed for a considerable length of time. It was also contended that the petitioner is doing the same business which the sick company was doing. These submissions of the petitioner company were negatived and the appeal was dismissed by the impugned order dated 22nd September, 2006 by which the petitioner is feeling aggrieved and has challenged it by filing the present petition.

(3.) Pursuant to this order, M/s R.R.Kabels Ltd. submitted a revised and duly tied up proposal with the operating agency and also deposited a sum of Rs.21 crores on 21st April, 2006 and a sum of Rs.5 crores on 9th May, 2006. Simultaneously, it preferred the present Writ Petition bearing WP(C) No.942/2006 before this Court praying for quashing of the impugned order dated 22nd September, 2006 and further praying that the rehabilitation scheme proposed by the petitioner namely M/s R.R.Kabels Ltd. ought to be sanctioned by the respondents under the provisions of The Sick Industrial Companies (Special Provisions) Act, 1985.