LAWS(ALL)-2001-12-74

MAGNESITE AND MINERALS LTD Vs. STATE OF ALLAHABD

Decided On December 12, 2001
IN RE: MAGNESITE AND MINERALS LTD. Appellant
V/S
STATE OF ALLAHABAD Respondents

JUDGEMENT

(1.) This company application was registered upon receipt of the opinion under Section 20(1) of the Sick Industrial Company (Special Provisions) Act, 1985, received from the Board for Industrial and Financial Reconstruction (BIFR) vide letter of its Registrar dated 27-9-2000 in case No. 302/87B(II) received by the Court on 9-10-2000.

(2.) The opinion dated 24-8-2000 appended to the letter records the conclusion of the Bench in paragraph-15 of the order that despite of sanctioning two schemes for its revival it has not been possible for the company to turn its net worth positive since 1987. In the absence of any firm commitment from any of the prospective co-promoters, no scope was seen at that stage to work out another revival scheme which could enable the company to revive itself and discharge all its due financial obligations, and the Bench, therefore, confirmed its earlier prima facie opinion that it would be just equitable and in the public interest if the sick company, namely, Magnesite & Minerals Ltd. be wound up under Section 20(1).

(3.) Notices were issued to the company by order dated 16-7-2000. The office reports that in compliance with the order the notices were sent to the company, PICUP and UPFC on 27-7-2001 fixing 20-8-2001. In respect of the company and the UPFC neither acknowledgement due nor undelivered cover had been returned back. In respect of PICUP Sri Anurag Khanna has filed appearance, under rules of the Court, the service is deemed sufficient on the company as well as UPFC.