Bengal Waterproof Ltd. vs Uoi & Anr. on 18 February, 2016

1. In response to the directions contained in the order dated February 10,
2016, the Registrar BIFR has produced through his counsel minutes of a
meeting dated April 28, 2009 drawn up by the Board of Industrial and
Financial Reconstruction, which read as under:-
3. The communication dated January 29, 2016 addressed to the
petitioner by Secretary BIFR informs that reference made by the petitioner
under Section 15 of SICA, 1985 has been registered as Case No.21/2016 and
therefore the petitioner company is restrained from disposing of or
alienating the fixed assets of the petitioner without the prior consent of
BIFR.
4. Whilst it may be a starting point of a decision that a sick company in
respect whereof reference has been admitted should not dispose of its fixed

W.P.(C) No.1127/2016 Page 3 of 5
assets pending consideration whether a scheme of rehabilitation, but a
judicial decision has to be taken on that aspect of the matter in view of
Section 22A of SICA, 1985 which requires BIFR to form an opinion that in
public interest a sick industrial company should be restrained from disposing
of its fixed assets pending consideration of a scheme for revival.

Source: Indian Kanoon

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