Navnit R. Kamani & Ors. Vs. R.R. Kamani & Ors.
EmailAppeal: Civil Misc. Petition No. 3805 of 1987.
(In SLP 15228/83).
(In SLP 15228/83).
Petitioner: Navnit R. Kamani & Ors.
Respondent: R.R. Kamani & Ors.
Apeal: Civil Misc. Petition No. 3805 of 1987.
(In SLP 15228/83).
(In SLP 15228/83).
Judges: A.P.SEN & M.N. VENKATACHALIAH, JJ.
Date of Judgment: Oct 13, 1987
Head Note:
SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1986:
Section 4 – Taking over of the Company by the workers – Scheme framed by the workers – Board for Industrial & Financial Reconstruction directed to file a feasibility report in respect of the scheme framed by the workers.
JUDGEMENT:
O R D E R
1. We call upon respondent no.59, the Board for Industrial & Financial Reconstruction, New Delhi, constituted under s. 4 of the Sick Industrial Companies (Special Provisions) Act, 1986 to file a feasibility report with respect to the scheme framed by the workers within six weeks from today. The Board may hear the workers as well as different groups of the Kamani family before making its recommendations.
2. The question whether the scheme framed by the workers for the taking over of Messrs Kamani Tubes Pvt.Ltd. should be acted upon shall be considered after the receipt of the report of the Board. This matter be listed after eight weeks.
3. Shri H.D. Nanavati, learned counsel assisting the learned Mediator states before us that he has no funds from which the workers’ dues said to be to the tune of Rs.1.50 crores can be met. He further states that there are two winding up proceedings of Messrs Kamani Tubes Pvt. Ltd.initiated at the instance of certain creditors and are now pending before the High Court. We make it clear that the learned Company Judge shall continue winding up proceedings. The learned Company Judge shall permit the workers to participate in the proceedings. Shri Nanavati shall intimate the result of these proceedings.
4. It appears that the Bank of India has not complied with the direction made by the learned Mediator by his order dated June 25, 1986 for payment of Rs.11 lakhs out of the amount held to the credit of Messrs Kamani Tubes Pvt. Ltd. The bank in its counter-affidavit asserts that it has a claim against the company to the extent of over Rs.6 crores. Shri Kacker, learned counsel appearing for the workers prays for time to file an affidavit-in-reply. The workers are granted two weeks time for the purpose.
5. The matter relating to payment of Rs.11 lakhs by the Bank of India along with C.M.P. No.25126/87 shall be listed on November 3, 1987. We understand that the learned mediator has called the parties for a meeting to be held on October 18, 1987. One of the subjects to be discussed is the prayer regarding the X-ray Engineering Company. Shri Andhyarujina, learned counsel appearing for some of the petitioners questions the bona fides of the Workers Action Committee. That is a question for the learned mediator to decide. In the meantime, the parties may exchange their affidavits. The learned Mediator shall deal with the question and pass such orders as he deems necessary.
6. Shri C.S. Vaidyanathan, learned counsel appearing for the petitioners craves for leave to withdraw from the proceedings. He would be permitted to do so after he notifies to each of his clients.
1. We call upon respondent no.59, the Board for Industrial & Financial Reconstruction, New Delhi, constituted under s. 4 of the Sick Industrial Companies (Special Provisions) Act, 1986 to file a feasibility report with respect to the scheme framed by the workers within six weeks from today. The Board may hear the workers as well as different groups of the Kamani family before making its recommendations.
2. The question whether the scheme framed by the workers for the taking over of Messrs Kamani Tubes Pvt.Ltd. should be acted upon shall be considered after the receipt of the report of the Board. This matter be listed after eight weeks.
3. Shri H.D. Nanavati, learned counsel assisting the learned Mediator states before us that he has no funds from which the workers’ dues said to be to the tune of Rs.1.50 crores can be met. He further states that there are two winding up proceedings of Messrs Kamani Tubes Pvt. Ltd.initiated at the instance of certain creditors and are now pending before the High Court. We make it clear that the learned Company Judge shall continue winding up proceedings. The learned Company Judge shall permit the workers to participate in the proceedings. Shri Nanavati shall intimate the result of these proceedings.
4. It appears that the Bank of India has not complied with the direction made by the learned Mediator by his order dated June 25, 1986 for payment of Rs.11 lakhs out of the amount held to the credit of Messrs Kamani Tubes Pvt. Ltd. The bank in its counter-affidavit asserts that it has a claim against the company to the extent of over Rs.6 crores. Shri Kacker, learned counsel appearing for the workers prays for time to file an affidavit-in-reply. The workers are granted two weeks time for the purpose.
5. The matter relating to payment of Rs.11 lakhs by the Bank of India along with C.M.P. No.25126/87 shall be listed on November 3, 1987. We understand that the learned mediator has called the parties for a meeting to be held on October 18, 1987. One of the subjects to be discussed is the prayer regarding the X-ray Engineering Company. Shri Andhyarujina, learned counsel appearing for some of the petitioners questions the bona fides of the Workers Action Committee. That is a question for the learned mediator to decide. In the meantime, the parties may exchange their affidavits. The learned Mediator shall deal with the question and pass such orders as he deems necessary.
6. Shri C.S. Vaidyanathan, learned counsel appearing for the petitioners craves for leave to withdraw from the proceedings. He would be permitted to do so after he notifies to each of his clients.
