Delhi High Court by its order has held that the technical point of composition of the bench constituted by Boiard of Industrial and Financial Reconstruction (BIFR) is not tenable.
The INCAB case has now been fixed for hearing ‘On Merit’ for May 5, 2014. This order is against the writ filed by M/s RR Kables and Peagsus challenging the order of AAIFR before Delhi High Court. The challenge to the judgement of Appellate Authority for Industrial and Financial Reconstruction (AAIFR) was on two accounts: (1) The bench of BIFR which rendered the judgement on 9.12.2009 was not competent to decide the case, because one of the members of the Bench was substituted midway of arguments and (2.) Merit of revival proposal.
The Delhi High Court heard the arguments on the technical points and reserved the case in October 2013 for passing orders.INCAB Jamshedpur unit has been lying closed since 1999. INCAB was declared sick in April 2000 by BIFR and State Bank of India was appointed Operating Agency (OA). In 2004-05- Proposals were invited for Revival. BIFR in the year 2004-05 directed for Change of Management of INCAB.
In 2009, Delhi High Court directed BIFR to consider the revival proposal of Tata Steel and RR Kables only. Subsequently Supreme Court allowed proposal of Pegasus also for evaluation by BIFR.After the aforesaid long protracted litigation before the BIFR, AAIFR, Delhi High Court and Supreme Court, finally the proposals of the aforesaid three bidders, namely, RRK, Tata Steel and Pegasus were considered by OA twice and BIFR for evaluation.
By order dated 9.12.2009 BIFR concluded that out of the three schemes, the revival scheme submitted by Tata Steel ltd. was the best and by order dated 30.06.2011, the Appellate Authority i.e. AAIFR confirmed the order of BIFR.