UMI SPECIAL STEEL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) -Both the writ petitions filed by common petitioner and there being common question of law involved, they were heard together and are being disposed of by this common order.

(2.) THE petitioner, a Company registered under the Company 's Act, 1956 having its registered office at Giribraj Balkudra, Hazaribagh has a mini steel plant for manufacture of alloy, tool and special steel products. In view of deteriorating operational results, the management of the Company explored possibilities and options for restructuring and reviving the Company by a joint venture and improvement of technology etc. It obtained financial term loan from financial institutions, but ultimately having failed to achieve the desired result. In view of losses, the Company having left with no option, had to approach the Board for Industrial and Financial Reconstruction (B.I.F.R.) under the Sick Industrial Companies (Special Provisions) Act, 1985.

(3.) THE draft Rehabilitation Scheme was circulated on 14th October, 1998 and on receipt of objection, revised scheme submitted on 15th January, 1999 and ultimately sanctioned on 11th February, 1999 under section 19(2) of S.I.C.A. Rehabilitation Scheme.