9911796707
TMI Blog2008 (3) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the said change was contrary to the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 having been introduced by the sick company without the permission of the Board. The incidental question that falls for consideration is whether the AAIFR was justified in dismissing the appeal filed by the petitioner on the ground that the same was not maintainable as the petitioners were not parties in proceedings before BIFR. The controversy arises in the following circumstances: 2. Coral Newsprint Ltd. Respondent No. 3 in this petition appears to have filed a reference under section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 before the BIFR. By its order dated 4 October, 2001, the Board after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two groups had arranged between themselves was without its approval and contrary to the provisions of the Act which could not be recognized. The BIFR further directed all concerned to maintain status-quo failing which action under section 24, 33 and 34 of the Act was threatened against the defaulters. 3. Aggrieved by the aforementioned order passed by the BIFR, the petitioners preferred an appeal before the AAIFR which failed and was dismissed by the said Tribunal by order dated 24 September, 2007, holding that the petitioners had no locus standi to maintain the appeal as they were not parties in Case No. 328 of 2000 before the BIFR in which the order under appeal was passed. The present writ petition, as already noticed earlier, assails ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the company during the pendency of the proceedings before the Board. The company having been declared to be a sick industrial company, any scheme or arrangement intended to revive or rehabilitate the same had to be only in accordance with the provisions of the Act and under the supervision of the Board. It is evident from a plain reading of section 17 and 18 of the Act that the scheme prepared by the operating agency had to be examined by the Board and sanctioned with or without modification after taking into consideration the suggestion received from the sick industrial company and the operating agency as also from the transferee industrial company and any other company concerned in the amalgamation or from any shareholder, creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the arrangement between the two groups however have arisen leading to multiple rounds of litigation between them in this court and in other courts. It is common ground that all the disputes arising out of the agreement between the parties now stand referred for arbitration of Hon'ble Justice S.C. Jain, a former judge of this court for adjudication. It is also not in dispute that in the said arbitration proceedings, while the petitioners Jalan group seek specific performance of the agreement and in the alternate refund of the amount spent by them, respondent No. 3 company has made a counter claim of Rs. 15 crores. These parallel proceedings are now pending before the arbitrator pursuant to a reference made by this court. The petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 11.51% shares. 9. Accordingly the petition is disposed of in the above terms with no order as to costs." 7. In the above facts and circumstances, the BIFR was justified in ignoring the arrangement sought to be introduced without its approval which arrangement has, at any rate, proved more problematic than useful to the parties. If the ultimate object of the proceedings before the BIFR was to revive the company and draw it out of the financial difficulties that it had landed in, the said object could not be achieved by thrusting upon it an arrangement which has, from the very inception, landed in rough waters. There is in that view, therefore, no room for interference with the order made by the BIFR. 8. The incidental question, whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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