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B.I.F.R. v. In The Matter Of M/S Atma Steels Ltd. - MISC. COMPANY APPLICATION No. 3 of 2001  RD-AH 3308 (14 February 2006)
Court No. 9
MISC. COMPANY APPLICATION NO. 3 OF 2001
In the matter of
M/s Atma Steels Limited
Hon'ble Sunil Ambwani, J.
Shri A.K. Misra appears for Official Liquidator. Shri S.K. Saxena, Official Liquidator is present in Court. Shri Arun Kumar appears for respondent-company.
This is a reference made by Board of Industiral and Financial Reconstruction (BIFR) under Section 20 (1) of Sick Industrial Companies (Special Provisions) Act 1985, with recommendations to wind up the respondent-company.
Learned counsel for the respondent-company has filed an application informing the Court that Writ Petition No. 9347 of 2002 filed against the order of BIFR dated 30.3.2001 has been disposed of by the Court on 27.1.2006, and in consequence thereof this reference be remitted back to the BIFR for appropriate proceedings and orders.
That judgement and order disposing of the writ petition is quoted as below;
"The petitioner-company was ordered to be wound up by the BIFR by order dated 30.3.2001. The appeal was dismissed by the AAIFR. This writ petition was filed by the company challenging the order of the AAIFR.
According to the petitioner's contention, substantial changes have taken place since the order of the BIFR and AAIFR. Some of the important changes are that the company has made arrangements and has paid all the dues of all the financial institution, except the Bank of Baroda. Even Bank of Baroda, represented by Sri S.K. Gupta, who is present in Court today, has been paid substantial part of its dues and an agreement has been entered into between the company and Bank of Baroda. Apart from this, there are dues of the Power Corporation which has already restored the power supply of the petitioner-company and the petitioner-company has gone into production again. There are dues of the workers, who are represented by Ms. Suman sirohi, Advocate, and who states that the workers also have an interest in the company continuing to work.
The company states that it has prepared another scheme of rehabilitation, which is Annexure'14' to the application made to this Court and which is dated 24.10.2005.
In the light of all these factors, I am of the opinion that the matter should be re-examined by the BIFR with regard to the proposed scheme of rehabilitation.
Therefore, the orders of the AAIFR and BIFR, which had been stayed by the interim order passed in this writ petition are set aside subject to the condition that a certified copy of this order along with the proposed scheme and other relevant materials are presented before the BIFR by the petitioner within a month from today. If the aforesaid documents are presented within the time fixed above, the BIFR will consider the rehabilitation scheme proposed by the company or other such rehabilitation schemes as the BIFR may consider fit, appropriate orders will be passed either for rehabilitating the company or for winding up by the BIFR.
The writ petition is disposed of, as above."
Having regard to the orders passed by this Court directing BIFR to consider the rehabilitation scheme proposed by the company or such rehabilitation schemes as the BIFR may consider fit, the recommendation is remitted to BIFR, for appropriate orders.
The Company application/reference is accordingly disposed of.
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