LAWS(ALL)-2008-10-153

IN RE: KANAN STEELS LTD. Vs. STATE

Decided On October 20, 2008
In Re: Kanan Steels Ltd. Appellant
V/S
STATE Respondents

JUDGEMENT

(1.) THE matter was registered on a reference received from Board for Industrial and Financial Reconstruction (BIFR) recommending that M/s. Kanan Steels Limited be wound up under Section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

(2.) IT is reported that an appeal was filed before Appellate Authority for Industrial & Financial Reconstruction (AAIFR), New Delhi, and the matter was adjourned from time to time Shri Amit Negi had informed the Court earlier, that the appeal was dismissed by the AAIFR on 19 -7 -2005. Since thereafter the proceedings are being adjourned for one reason or other.

(3.) IT is very often found by the Court that after the recommendations of the BIFR to wind up the company and dismissal of the appeal, the company adopts dilatory tactics to avoid the winding up to siphon off or sell away the assets of the company. It becomes very difficult thereafter for the Official Liquidator to recover the document and the assets.