BOARD OPINION Vs. AMAR POLYSTERS LIMITED

JUDGEMENT

(1.) Company Petition No. 115 of 2001 arises from the opinion dated 16.5.2001 of the Board for Industrial and Financial Reconstruction (`the BIFR' for brevity) under Section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as `the SICA') recommending in Case No.222 of 1997 that it is just and equitable and in public interest that Amar Polysters Ltd. (the Company or the respondent - Company for brevity) be wound up.

(2.) Company Petition Nos. 157 and 245 of 1997 are filed by two creditors for winding up the respondent Company on the ground that the respondent Company has not paid their dues inspite of service of statutory notices. The dues of M/s Polyfil Marketing - petitioner in Company Petition No. 157 of 1997 are Rs.5,31,353/inclusive of interest as on 20.3.1997. The dues of M/s Rajasthan Spinning and Weaving Mills Ltd., petitioner in Company Petition No. 245 of 1997, are Rs.8,77,103.00 inclusive of interest as on 18.6.1997.

(3.) The respondent Company filed a reference under the SICA in the year 1997. The Company was declared to be a sick Company. IDBI was appointed as the Operating Agency. Neither the management of the respondent Company submitted any viable rehabilitation proposal acceptable to the secured creditors and banks nor was there any response to the advertisement for change of management. Hence, the Operating Agency suggested that the respondent Company be would up. After considering the views of the Operating Agency, Banks and the Government of Gujarat, the Board formed a prima facie opinion that it was not possible to offer any revival scheme for the Company and that it would be just and equitable and in public interest if the respondent Company was wound up. Even after the notice to that effect under public advertisement, nothing emerged so as to require the Board to change this opinion. The representatives of the secured creditors including IDBI, Union Bank of India, Bank of Baroda, GIIC and EPFO agreed that the Company be wound up. After hearing all the concerned parties, the Board came to the conclusion that it would be just and equitable and in public interest that the respondent Company be wound up under Section 20(1) of the Act. The said opinion dated 16.5.2001 conveyed through its Registrar's letter dated 23.5.2001 is registered as Company Petition No. 115 of 2001.