M.C.Jain, J. - (1.) Universal Insulators & Ceramics Ltd. is a public limited company incorporated under the Companies Act, 1956. It suffered losses and approached BIFR under section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 ('the Act'). The case had been before the BIFR for twelve years and efforts made for its revival had not succeeded. Ultimately, the BIFR found that the company was not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all its financial obligations. The company, as a result thereof, was not likely to become viable in future and that it was just, equitable and in public interest that it should be wound up under Section 20(1) of the Act. Under order dated 13-4-1999 BIFR forwarded its opinion to this Court for the winding up of the company. The company preferred appeal No. 40 of 1999 before AAIFR but the same was dismissed on 21-6-1999.
(2.) While the winding up matter on the recommendation of the BIFR is pending before this Court, the company in question has objected to its winding up on the recommendation of the BIFR and has come up with a Rehabilitation-cum-Repayment Scheme. The original proposal was submitted on 28-10-1999 and modified scheme has been presented on 28-4-2000 through application A-14. A.K. Bhargava, Chairman-cum-Managing Director of the company has filed affidavits in support of the such original scheme as also to back the modified one.
(3.) The financial institutions present before the BIFR were the following: (i) IIBI. (ii) Syndicate Bank. (iii) PICUP. (iv) UPSIDC.;