TMI Blog2018 (10) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the period of scheme for further five years which was prepared by BIFR under the provisions of Sick Industrial Companies (Special Provisions), Act, 1985 - Held that:- In absence of any provision to review the scheme already sanctioned under sub-section (1) of Section 31 of the I&B Code, the Adjudicating Authority held that the scheme having already approved and as the company failed to turn its net worth positive within the period of sanctioned scheme, it will be presumed that the ‘corporate applicant’ has violated the sanctioned scheme, which will result in liquidation proceedings. Having heard the learned counsel for the parties, we also agree with the finding of the Adjudicating Authority that if the scheme sanctioned under sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme can be implemented and net worth of the Corporate Applicant will become positive and during such period to direct the Additional Commissioner, Commercial Taxes, Government of West Bengal, Kolkata not to initiate any recovery proceedings against the Corporate Applicant in respect of demand for the period from 2010-11 to 2014-15. 3. Brief facts of the case is that the scheme was earlier sanctioned by BIFR vide its order dated 16th January, 2004 in case No. 336/2000. In the approved scheme, a cutoff date of 31st December, 2002 was fixed. By subsequent order dated 12th December, 2013, the BIFR ordered as follows: Having considered the submissions made, materials on record, the Bench observed that the company could not be able to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber, 2016 i.e. the date the provisions of the I B Code came into force. The Ministry of Corporate Affairs in exercise of power conferred under Section 252 by order dated 24th May, 2017 amended the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 in the manner specified in the Eighth Schedule of the I B Code. The second proviso to clause (b) of Section 4 of the SICA Repeal Act, 2003 provided that any scheme sanctioned under sub-section (4) or any scheme under implementation under sub-section (12) of Section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 shall be deemed to be a scheme under implementation in terms of Section 424D of the Companies Act, 1956 and shall be dealt with as per the provisions co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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