ORDER
Sunil Ambwani, J.
1. This company application has been registered on receipt of an opinion of BIFR under Section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (‘the Act’) recorded on 17-8-2001 to wind up the company.
2. Notices were ordered to be issued on 21-1-2002 to the company and IFCI to show cause as to why the company may not be wound up. The office has reported that the notices were sent on 28-1-2002 fixing 18-2-2002 but neither the acknowledgement due nor undelivered cover have been returned back. Today appearance has been put by Sri C.N. Tewary on behalf of the respondent-company.
3. The company had filed a reference under Section 15(1) of the Act. A scheme for rehabilitation was sanctioned on 17-12-1996. On 29-11-1999 while the review of the rehabilitation of the Scheme was considered, the Board found that the existing promoters have failed to implement most of the major parameters of the sanctioned Scheme of 1996 and that inspite of seven years of the sanction of earlier Scheme, the proposal of rehabilitation failed. Notices were issued for change of management. I.F.C.I. (appointed Monitoring Agency) was directed to prepare a profile of the company and circulate to all banks/financial institutions and carry out a Techno Economic Viability Study (TEVS) of the company and estimate of the market value of its assets as well as of the shares and to hold a joint meeting of all secured creditors. In the hearing dated 2-5-2001, the Board recorded that the advertisement for change of management has not been received. In response to that monitoring agency reported that no progress has been made towards rehabilitation and the promoter has not brought any funds to rehabilitate the company. The Bench formed a prima facie opinion and issued notices as to why the company may not be wound up, fixing 17-8-2001. On that date, IFCI; IDHI and the representatives of Bank of India and Union Bank of India, stated that they have no objection for winding up of the company. They had filed application under Section 24 of the Act, regarding diversion of subsidy amount, they could not substantiate with the evidences and that they have lodged a criminal complaint against the company with Central Bureau of Investigation. The representative of Rajasthan State Mines & Minerals Ltd. also submitted that they have no objection to the winding up of
company. The company, who also represented through their advocates, submitted that they have no proposal and, thus, the Bench confirmed its prima facie opinion that the sick industrial company, viz., Ganges Fertilizers & Chemicals Ltd. was not likely to make its net worth exceed the accumulated losses within a reasonable time while meeting all its financial obligation and that the company as a result thereof was not likely to become viable in future and it was, therefore, just, equitable and in public interest that the company should be wound up. Sri Nagendra Kumar Srivastava, the learned counsel appearing for company, has filed an affidavit of Sri Prakash Kanudia, the Managing Director of the company stating in paragraphas 3, 4 and 5 that the company is not in a position to put in more money into the company; that no body responded to the advertisement issued by IFCI to join as co-promoter and that considering the position and opinions of all concerned, BIFR concluded that the company is liable to be wound up. In para 8 of the affidavit, it has been stated that the deponent/company has no objection to the opinion for winding up the company. He has also given the address of the registered office and the present address for correspondence at 859/71, Afim Kothi, Kanpur in para 7 of the affidavit.
4. In the aforesaid facts and circumstances of the case, the Court has accepted the opinion of BIFR that Ganges Fertilizers & Chemicals Ltd., is having its registered office at Bewar Bye-pass, Farrukhabad and directs it to be wound up. The Official Liquidator is appointed as liquidator of the company and is directed to proceed to liquidate the company in accordance with the provisions of Companies Act, 1956, and the Companies
(Court) Rules, 1959.