MADHU FABRICS LIMITED Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) The petitioners M/s Madhu Fabrics Ltd. and M/s Madhu Textiles Ahmedabad Limited, by filing Special Civil Application No.5124 and 5125 of 2000 respectively, have challenged the orders dated 14.2.2000 passed by the Board for Industrial and Financial Reconstruction (In short, 'BIFR') annexure A and order dated 4.5.2000 passed by the Appellate Authority for Industrial and Finance Reconstruction (In short, 'AAIFR') annexure B. The BIFR, after considering the facts, opined that the petitioner company is not likely to become viable in future and, therefore, it is just, equitable and in public interest that it should be wound up under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (In short, 'SICA'). AAIFR, in appeal, confirmed the said order.

(2.) Company Petition No. 31 of 2000 is for consideration of Board opinion in the matter of M/s Madhu Fabrics Limited while Company Petition No. 32 of 2000 is for consideration of Board opinion with respect to M/s Madhu Textiles Ahmedabad Limited. The petitioner M/s Madhu Textiles Ahmedabad Limited has also filed Company Application No. 288 of 2000 in Company Petition No. 32 of 2000 seeking directions to convene a meeting under section 391 of the Companies Act, 1956 (In short, 'the Act'). In the affidavit in support of judge's summons, the petitioner M/s Madhu Textiles presented a scheme to rehabilitate. Similarly,M/s Madhu Fabrics also presented a scheme to rehabilitate by filing Company Application No. 446 of 2000 in Company Petition No. 31 of 2000. Both the petitioners also produced the very scheme for rehabilitation by way of draft amendment in their respective petitions.

(3.) Since the order of BIFR as well as AAIFR is under challenge in the petitions and this Court is required to consider the opinion of BIFR for passing the order of winding up, Special Civil Applications as well as Company Petitions and Company Applications were heard together and are disposed of by this common judgment and order.