B.S.V.PRAKASH KUMAR,MEMBER (J) - (1.) THE petitioner in the C.P. filed this C.A. for appointment of Mr. H.P. Ranina as Facilitator -cum -Advisor in place of Mr. H.S. Acharya, with full powers to take decisions in case of any disputes among the Directors and for permission to close down two undertakings with a brand name "Ambassador Sky Chef" operating in Delhi and Mumbai, subject to following and obtaining necessary approval from the State Government.
(2.) The petitioner submits, R1 Company has two flight catering units at Delhi and Mumbai with a brand name "Ambassador Sky Chef". This company was doing well and making profits till 2007 with a large customer base, but by intense competition in flight -catering business and by infighting in the company, it has been consistently loosing Rs. 5.5 lacs per day since 2007, which led to a colossal loss of Rs. 62.72 Crores from April 2009 to March 2014. On seeing the company started making tosses, the petitioner, in the year 2007 itself smacking business fall, entered into negotiations with M/s. Gate Gourmet, world leader in airline catering, to have a joint venture agreement. However, for having R2 (father of the petitioner) backed out from signing over the joint venture agreement, it could not take off, the result is, this company business and reputation had gone down. Having M/s. Gate Gourmet failed to have any joint venture with R1 Company, Gate Gourmet, on its own entered into Indian market in conjunction with M/s. Sky Hospitality, in which Rohit Narang, son of R2 Is a Director. By advent of this foreign company into India through M/s. Sky Hospitality with R2's son, through second wife, as one of the Directors, the competition has become tough ultimately led to making losses consistently.
(3.) THE petitioner says it is known to everybody that this company has been labouring against infighting for decades, and for having several companies come into this business, flight catering business has become overcrowded without any let up to R1 Company to stand -up as before. Since global aviation industry has been going through an extremely bad phase, the cost cutting has become a mantra for survival and success, therefore, the catering business has been facing severe crunch in general.;