GEAR ENTERPRISES Vs. MAFATLAL ENGINEERING INDUSTRIES LTD

JUDGEMENT

(1.) THE points involved in the petition herein as also in another petition, both field by the creditors for winding up the respondent-company, viz. , Mafatlal Engineering Industries Ltd. (hereinafter referred to as "the company" for the brevity's sake), on the ground of inability of the company to pay debts, are as under:

(2.) UNDISPUTEDLY the company was declared as a sick unit under the provisions of section 17 of the SIC Act prior to the filing of the petition herein. It is also a fact that the petition has been filed without obtaining the prior permission of the BIFR. It is also undisputed that till date, the said declaration continues. A few relevant dates -1. In 1987, a reference was made under section 15 of the SIC Act to the BIFR. 2. August 22, 1988, the BIFR declared the company a sick company. 3. May 27, 1989, the company stopped operation. 4. September, 1989, ICICI the operating agency prepared a report. 5. February 2, 1993, the BIFR formed an opinion that the company is not viable and recommended its winding up. 6. A petition was filed in this court on October 16, 1989, and accepted on March 14, 1990, that it after the declaration as a sick company. 7. The petition was admitted on September 12, 1990.

(3.) IT is stated that the union of the employees of the company has challenged the said order of the BIFR in the writ petition in which interim stay is granted and the said proceedings are pending.