GRAM PANCHAYAT Vs. VALLABH GLASS WORKS LIMITED
SUPREME COURT OF INDIA (FROM: BOMBAY)
VALLABH GLASS WORKS LIMITED
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K. Jagannatha Shetty, J. -
(1.)The petitioners seek leave to appeal against the decision of the Bombay High Court in Writ Petition No. 6108/87 quashing the proceedings for recovery of property tax and other expenses due from the first respondent company.
(2.)The matter arises in this way:For the purpose of prevention and revival of sick industries, the Central Government has enacted the Act called "The Sick Industrial Companies (Special Provisions) Act, 1985 ('The Act). The Act extends to the whole of India including the State of Jammu and Kashmir. It came into force (except Ss. 15 to 34) with effect from 15 May, 1987. The Act covers only sick industrial companies or industrial companies which have the potential to become sick. The Act empowers the Central Government to establish a Board to be known as the Board for Industrial and Financial Reconstruction to exercise the jurisdiction and powers, and discharge the functions and duties imposed under the Act.
(3.)The first respondent-company Messrs. Shree Vallabh Glass Works Ltd. has been declared to be a sick industrial company within the meaning of clause (o) of subsection (1) of S. 3 of the Act. 'Sick Industrial Company' means 'an industrial company being a company registered for not less than seven years which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year'.
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