IDBI BANK Vs. HARSHWARDAN CHEMICALS & MINERALS LTD

JUDGEMENT

(1.) By way of this company petition, secured creditor of the respondent-company Harshwardhan Chemicals & Minerals Ltd. has prayed that the respondent-company be ordered to be wound up, essentially with reference to the fact that the company has defaulted in making payment as required by the Scheme of Compromise and Arrangement, approved by this Court by the order dated 09.03.2010 passed in Company Petition No.2/2008.

(2.) The relevant background aspects of the matter are that the respondent-company, incorporated under the provisions of the Companies Act, 1956 and having its Registered Office at Udaipur, obtained credit facility from different financial institutions like, IDBI Bank Ltd., (the present petitioner), ICICI Bank, IFCI and Allahabad Bank for establishment of chemical manufacturing units. The loans were secured by first parpassu charge on the fixed assets of the company and personal guarantee of the promoter of company.

(3.) Subsequently, the respondent-company became sick and the reference filed by it under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 ('the Act') was considered, being Reference Case No.40/1996, by the Board for Industrial and Financial Re-construction ('BIFR'); and ultimately, by the order dated 16.09.2004, BIFR confirmed its prima facie opinion that it was just and equitable and in public interest to order winding up of the respondent-company in terms of Section 20(1) of the Act. The opinion was forwarded to this Court for further proceedings. It appears that the respondent-company filed an appeal against the order of BIFR which was dismissed by the appellate authority and in the result, the order passed by BIFR was upheld.