JAIPUR METALS AND ELECTRICAL Vs. STATE

JUDGEMENT

(1.) Board for Industrial and Financial Reconstruction ("BIFR") in exercise of its powers Under Section 20(1) of Sick Industrial Companies (Special Provisions) Act, 1985 ("Act, 1985") after holding inquiry Under Section 16, and taking note of all relevant facts and circumstances on record, and after opportunity of hearing being afforded to all the concerned parties, on having come to its conclusion vide order dt. 26/09/2002 in Case No. 3/1999 that M/s Jaipur Metal and Electrical Ltd ("JMEL") is not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligations - as a result therefore, is not likely to become viable in future, has forwarded its opinion to the Company Court vide its letter dt. 03/10/2002 and recommended that Company-JMEL be wound up.

(2.) At the stage of admission where recommendations made by BIFR are to be examined for winding up of company-JMEL, two applications (No. 6780/dt. 15/03/2010) by M/s Genus Power Infrastructure Ltd and (No. 17945/dt. 26/08/2010) by M/s Umang Board (P) Ltd, have been filed seeking their impleadment as party to instant company petition; and question raised for consideration by both the applicant-Cos.(Genus and Umang) is as to whether at a stage anterior to the making of winding up of Company-JMEL, applicants (Genus and Umang) are required to be impleaded and heard by Company Court.

(3.) What has been averred by applicant (Genus) seeking impleadment is that State Government being major share holder considered for revival of Company JMEL and accordingly took necessary steps through Request for proposal (REP) inviting private promoters to bid for acquiring of JMEL, vide notice dt. 08/09/2008 (Ann.A/2) pursuant to which applicant Genus tendered its bid offer and was declared successful bidder vide letter dt. 08/10/2008 (Ann.A/3) and the RFP document provided the successful bidder to enter into a memo of understanding (MOU) with the State Government, JME Employees Credit and Thrift Soc. Ltd and JMEL Mazdoor Sangh - pursuant to which, MOU is said to have been entered into and executed and in terms whereof, payment towards employees' dues worth Rs. 6.83 Crores while Rs. 1.09 Crores towards State Government dues has been paid by applicant-Genus and pursuant to MOU, applicant (Genus) also submitted draft of rehabilitation scheme. On the said score, it has been prayed that applicant (Genus) is the creditor of Co.-JMEL and may be allowed to be impleaded to address the Company Court at the stage of admission of winding up petition pending consideration.