SHREE KARTHIK PAPERS LTD Vs. GOVERNMENT OF TAMILNADU

JUDGEMENT

(1.) THE petitioner in this case has been declared as Sick Industries within the meaning of Section 3 (1) (o) of Sick Industrial Companies (Special Provisions) Act 1985 by the Order of the BIFR dated 26.7.99 passed in case No. 89 of 1995 and IDBI was appointed as the operating agency under Section 17(3) of Sick Industrial Companies (special Provisions) Act 1985 to examine the viability of the company and prepare a draft scheme for its revival. THEreafter, several orders have been issued by the Board from time to time.

(2.) INSOFAR as the present case is concerned, the BIFR Bench-I, passed the following order on 11.5.2007.

(3.) THE main contention of the learned counsel for the petitioner is that the Industrial Department, which is a party in the BIFR Proceedings is bound by the rehabilitation scheme. Any order passed by the BIFR is binding on the respondents herein. Section 19(3) of the Sick Industrial Companies (Special Provisions) Act, 1985 provides for the same and it is read as follows:-