- (1.) Heard Shri Alok Mathur, learned Counsel for respondent-company Shri P.K. Singhal appears for Syndicate Bank.
(2.) M/s Universal Insulators & Ceramics Ltd-respondent company made a reference to Board for Industrial and Financial Reconstruction (BIFR) under Section 15 of the Sick Industrial Companies (Special Provisions) Act 1985 (in short the Act). It was registered as Case. No. 243/87 in Re: M/s Universal Insulators & Ceramics Ltd. The IIBI was appointed as Operating Agency (OA) and was required to submit a report for rehabilitation;
(3.) The proceedings were pending in BIFR for almost 12 years. The scheme for rehabilitation, sanctioned by the BIFR under Section 18(4) of the Act on 25.10.1990, and modified on 15.3.1993, could not be implemented. The proceedings of change of management did not receive any respondent. A show cause notice was given for winding up of the company on 6.1.1998 to which the objections were heard on 12.3.1998. The company again took time with regard to the status of the approval of bank guarantee to be issued by Andhra Bank. The OA informed the BJFR on 5.11.1998 and on 8.12.1998 that the company had failed to comply with the directions of the Bench and that even a personal loan of Rs. 1 lakh was not paid. The factory was not operating since long period of time and as such the BIFR confirmed its opinion that the company was not likely to make its net worth exceed its accumulated losses within a reasonable time, while meeting ail it? financial obligations, the company was not likely to become viable in future and thus it was just and equitable and in public interest that it was wound up under Section 20(1) of the Act. The opinion was forwarded to this Court by letter of Registrar of BIFR dated 23.4.1999 and was received on 3.5.1999.;