BOARD OPINION Vs. RAJPRAKASH SPINNING MILLS LTD.

JUDGEMENT

(1.) This petition arises from the opinion-dated April 28, 1995 of the Board for Industrial and Financial Reconstruction (hereinafter referred to as "the BIFR") in Case No. 290 of 1987 (new Case No. 21 of 1995), recommending to this court under section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "the SICA Act") for winding up of M/s. Raj Prakash Spg. Mills Ltd. (hereinafter referred to as "the company") as confirmed by the Appellate Authority for Industrial and Financial Reconstruction (hereinafter referred to as "the AAIFR" or "the appellate authority") on September 16, 1996, in Appeal No. 84 of 1995.

(2.) First phase of proceedings before the BIFR :

(3.) At the instance of the management of the company as well as at the instance of the Bank of Baroda, the company's case was referred to the BIFR. The company was declared to be a sick industrial company on September 22, 1988. The following reasons were noticed by the BIFR for the company's sickness (page 256 of the paper book) :