BANK OF INDIA Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) Shree Bajrang Electric Steel Company Private Limited (referred to as the Company) was a sick industrial company under the Sick Industrial Company (Special Provisions) Act, 1985. On 7th September, 1992 the Board of Industrial Finance & Reconstruction (referred to as BIFR) having considered the facts, came to the conclusion that it was just and equitable that the company should be wound up. Its decision was sent to the High Court under section 20 of the 1985 Act. An appeal was preferred before th appellate authority for Industrial Finance & Reconstruction, New Delhi (referred to as the AAIFR). The AAIFR dismissed the appeal and forwarded its recommendation to the Calcutta High Court by the order dated 4th February, 1994 confirming the order of the BIFR. The special leave petition filed was dismissed by the Supreme Court on 21st April, 1994 but leave was given to the parties to raise all issues as were available to them before the High Court.

(2.) A writ application was also filed by the company challenging the order of the AAIFR. No order of stay was obtained. The writ application is pending. When the winding up matter came up before the High Court, the court by an order dated 4th January, 1995 directed winding up of the company. The Official Liquidator was directed to take possession. The appeal preferred by the company was dismissed on 23rd August, 1995 by the Division Bench. The special leave petition was also dismissed by the Supreme Court on 9th February, 1996.

(3.) By an order dated 2nd July, 1996 the company was directed to be sold as a going concern.