ORISSA SPONGE IRON LTD Vs. RISHABH ISPAAT LTD

JUDGEMENT

(1.) Heard. This is an application moved by respondent-company praying for stay of further proceedings in Company Petition No. 4 of 1992, which the petitioner has preferred under S.439 read with Ss. 433 and 434 of the Companies Act, 1956, praying for winding up of Company and for appointing liquidator to take charge of assets and records of the Company.

(2.) It is averred in the application that respondent-applicant Company is a Sick Industrial Company within the meaning of provisions of Sick Industrial Company (Special Provisions) Act, 1985 (hereinafter referred to as 'the Act'). The Company has made a reference to the Board for Industrial and Financial Reconstruction (hereinafter referred to as 'the Board') for determining the measures, which shall be adopted with respect to the Company and as per the communication received by the applicant, the said reference stands registered as case No. 24 of 1993.

(3.) This application came up for orders on 31/03/1993, on which date, learned counsel for the Company was asked to file further affidavit disclosing the stage of the proceedings before the Board. Affidavit of Mr. N. D. Jain. Managing Director of the Company has been filed today, wherein it has been stated that no date has yet been fixed so far by the Board for further proceedings. It has further been stated that the Board registers a reference only when it is prima facie satisfied that the matter needs to be examined by it and it is with the registration of the case that the process of inquiry commences.