PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD Vs. APPELLATE AUTHROITY FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

JUDGEMENT

(1.) THIS petition has been filed by the Punjab State Industrial Development Corporation ( for short PSIDC) challenging the order dated 24.9.96, whereby the Appellate Authority for Industrial and Financial Reconstruction (for short AAIFR), has allowed the appeal of respondent No. 5 against an order dated 13.3.96 passed by the Board of Industrial and Financial Reconstruction (BIFR) dated 13.3.1996 holding that the reference preferred by the respondent No. 5 was not maintainable.

(2.) THE case set up by the petitioner is that after the aforementioned order dated 13.3.96, the respondent No. 5 had filed CWP No. 8496 of 1996 for the following reliefs :- a. Quash the Advertisement of sale Annexure P-1, b. To open the locks put on the unit of Punjab Nitrates Ltd. and to restrain the respondents from interfering in the functioning of the company in any way till pendency of reference/appeal before AIFR under Section 25 of 2 SICA, c. To exempt the necessity of filing certified copies of the Annexure. d. To award the costs of the petition.

(3.) BEFORE the filing of the said writ petition No. 8946 of 1996 the respondent No. 5 had also preferred an appeal against the aforesaid order dated 13.3.1996. It was this appeal which has been allowed by the impugned order wherein it has been held on fact that the reference was sought by the respondent No. 5 before the action under Section 29 of the State Financial Corporations Act, 1951 could be initiated by the petitioner and thus the finding of the BIFR that the action under Section 29 was prior to the seeking of reference was incorrect.