AIFR judgement

[Rajeev. K.]

Case No.93/1987 M/s Alluminium Industries Ltd 1 BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION BENCH III CASE NO. 93/87 M/S.ALUMINIUM INDUSTRIES LTD. SUMMARY RECORD OF THE PROCEEDINGS OF THE HEARING HELD ON 30-01-2012 BEFORE BENCH-III CONSISTING OF SHRI NIRMAL SINGH, CHAIRMAN AND SHRI YK GAIHA, MEMBER Present Name & Designation of the Representative S/Shri M/s. Aluminum Industries Ltd. 1. Prashant Somani, Director 2. Vivek Sibal, Advocate 3. Nitin Kothari, Auth. Rep. 4. Sumesh Dhawan, Advocate State Bank of Travancore (OA) 1.Thiagarajan.C,BranchManager 2.Anup Kumar, Manager Canara Bank R.Saikumar, Manager Govt. of Kerala Ramesh Babu, Advocate ICICI Bank Mahesh Kumar, Advocate\ Punjab National Bank Dileep K Jha, Manager M/s Pridhvi Asset Reconstruction Vijay Kumar, Advocate Securitisation Co. Ltd U. Eliazer (Retired Employees U. Eliazer, President Welfare Association N.Sambasiva Rao Alluminium Ind. Staff Assn. Hyderabad S. Rama Gopal, VP D.Satyakumar ALIND Workers Congress (INTUC) B. Ramakrishnan, Gen Secy M/s Voltas Impex Pvt Ltd 1. Nilesh Sharma, FCA 2. Bhuvan Arora ALIND Contract Workers Union 1. A Ravinder Reddy,V.P. Hyderabad 2. S Laxman Gee,GS ALIND Emp. Union, P.M.A. Rehman, Convener Revival Committee, Kundara Case No.93/1987 M/s Alluminium Industries Ltd 2 ALIND Workers Union, Kundara G. Ramachandran, Secretary ALIND Steel Plant Emp. Union B. Rajeev, Gen Secretary Union (AITUC), Kundara ALIND Steel Plant Workers M. Sivaprasad, Gen Secretary Congress (INTUC), Kundara ALIND Emp. Union, Hirakud 1. Lokanath Sabat, Gen Secy 2. C.M.Majhi ALIND Machinery Div. Emp Union 1. J.B,.Rai, Hyderabad 2. Sudhakar. V, ALIND Emp. Assn. Conductor Div. C. N. Chari Hyderabad P.Krishna ALIND workers Samrakshna Samathi 1. P.G Scaria, Advocate Kundara 2. S.Johnson Aliyarkutty ALIND Switchgear Emp.Assn.,Mannar 1. Mohan Kumar 2. Chandrakumar ALIND Switchgear Emp.Union,Mannar Jacob Thomas, ASEU (CITU) Kotak Mahindra Bank Vikas Bhardwaj, (assignee of ICICI & SBT) Associate Vice President Kundra Aluminium Factory Workers Rajeev M.K. Gen Secy Union, Kundra ALIND Material Handling Division, K. Arjunrao Hyderabad AREU, Trivandrum S.Ajith Kumar ALIND Machinery Div.Retired 1.P.Satya Prakash,VP Employees Welfare Union,Hyderabad 2.S.A.Khander,GS ALIND Steel Product Emp.Federation S. Mony, Advocate Coordination of ALIND Trade Union S. Mony, Advocate *********** 1. On a referen ce filed u n der s ection 15 (1) of SICA, th e Boa rd, in its h ea rin g h eld on 20/ 10/ 87, decla red th e com pa n y M/ s Alu m in u m Case No.93/1987 M/s Alluminium Industries Ltd 3 In du stries Ltd. (AIL) a s a Sick In du stria l Un derta kin g , with in th e m ea n in g of Section 3(1)(o) of th e Act, a n d th e Boa rd a ppoin ted th e IIBI a s th e Opera tin g Agen cy (OA) to form u la te a s ch em e for reviva l of th e sick com pa n y Th e Boa rd, in its s u bs equ en t h ea rin g h eld on 27/ 06/ 02, relieved IIBI from th e res pon sibility a s th e OA a n d a ppoin ted th e Sta te Ba n k of Tra va n cor e (SBT) a s th e OA. Th e Boa rd, in its h ea rin g h eld on 10/ 11/ 03, directed th a t s epa ra te reviva l s ch em es be con sidered/ a pproved in r/ o th e com pa n y s th ree (3) Division s viz Ma ch in ery Division (MD)/ Con du ctor Division (CD) a t Hydera ba d, Rela ys Division (RD) a t Th iru va n th a pu ram a n d Switch gea r Division (SD) a t Ma n n a r a n d th e Boa rd, a ccordin gly, directed the OA (SBT) to submit separate revival proposals in r/o each of these three (3) Divisions. 2. Based on the draft revival schemes [DRS(s)] received from the OA, the Boa rd prepa red/ circu la ted th e DRS(s) in res pect of ea ch of th e s a id th ree(3) Division s, vide Boa rd s order(s) dt. 28/ 01/ 05, to a ll con cern ed a gen cies, for th eir con s en ts/ com m en ts, in term s of provision u / s 19(1) & 19(2) of th e Act, with a direction th a t th e objection (s)/ s u ggestion s in r/ o th e DRS(s), if a n y, wou ld be con sidered by th e Boa rd, in its m a n da tory hearing, scheduled on 26/7/05. 3. Th e Boa rd, in its s a id m a n da tory h eld on 26/ 7/ 05, n oted, interalia, th a t s om e of th e a gen cies, besides ra isin g certa in objection (s) for consideration of division-wise revival schemes of the sick company M/s AIL, a ls o ra is ed objection s for th e propos ed dis pos a l of th e com pa n y s la n d/ a ss ets, ba s ed on th e offers/ prices received du rin g Dec 2002. Th e Boa rd n oted in th e s a id h ea rin g th a t th e re-open in g of th e fin a lized process for dis pos a l of th e com pa n y s s u rplu s la n d/ a ss ets wou ld be a n u n -ending exercis e. In view of th e con s en ts received from th e con cern ed a gen cies rega rdin g th e reliefs & con cession s en vis a ged from th em in r/ o th e DRS(s), th e Boa rd s a n ction ed th ree (3) s epa ra te reviva l s ch em es for th e com pa n y s th ree (3) division s viz MD/ CD a t Hydera ba d, RD a t Th iru va n th a p u ram & SD a t Mannar, h a vin g con sidered th e cut-off-da te (COD) a s 31/ 03/ 04, Case No.93/1987 M/s Alluminium Industries Ltd 4 wh ich , h erein a fter, wou ld be referred to a s th e (SS-05- MD/ CD), (SS-05- RD) & (SS-05-SD) res pectively. Th e Boa rd a ppoin ted th e SBT a s th e Mon itorin g Agen cy (MA) to m on itor th e progress of im plem en ta tion of th es e reviva l s ch em es. Th e Boa rd fu rth er directed th a t th e m a tter rega rdin g reviva l of Hirku n d (Oriss a ) & Ku n dra (Kera la ) Division s wou ld be considered by the Board separately. 4. Appea l n os. 91/ 2005, 15/ 2006, 53/ 2005, 98/ 2005, 120/ 2005, 127/ 2005, 136/ 2005 a n d 1 77/ 2005, were filed by M/ s.Un ited Sh ippers Ltd. (USL), M/ s.Alu m in iu m In du stries Em ployees Un ion (AIEU) (Hira ku n d), Alin d Em ployees Un ion Reviva l Com m ittee (AEURC), M/ s.GVK Petroch em ica ls Ltd. (GVKPL), M/ s.Alin d Ma ch in ery Division Em ployees Un ion (AMDEU), M/ s. Ea st Coa st Meta l & Min era ls Pvt. Ltd. (ECMMPL), M/ s. Globa l Corpora tion Ltd . (GCL) a n d M/ s. Vija y Electrica l Ltd. (VEL), before Hon ble AAIFR, ch a llen gin g th e BIFR s order dt.3.6.05 (i.e. th e order th rou gh wh ich th e BIFR com m u n ica ted its a pprova l on th e recom m en da tion of th e MA (SBT) ASC for s a le of th e sick com pa n y s two (2) non-via ble u n its viz. Hira ku n d, Oriss a a n d Ku n dra , Kera la ) a n d a ls o ch a llen gin g th e BIFR s s u bs equ en t ord er dt. 26.7.05 (i.e. th e order by wh ich three (3) separate schemes were sanctioned by the Board for revival of three (3) Divisions of the sick company M/s.AIL). 5. Hon ble AAIFR, du rin g its h ea rin g ta ken on 15.11.06, n oted, interalia, as under :- (a) Th e a pproa ch of BIFR wa s erron eou s. Th e com pa n y s via ble u n its s h ou ld be revived a n d th e u n -via ble u n its s h ou ld be dis pos ed-of, a n d th is should be done under the umbrella of one scheme which would take care-of in terest of a ll th e com pa n y s sta ke h olders. After s a n ction / im plem en ta tion of th e th ree (3) s epa ra te s ch em es for th ree (3) division s of th e sick com pa n y M/ s AIL, th ere wou ld be n o m a n u fa ctu rin g u n its left in th e com pa n y for revival by the BIFR. (b) Th e n et effect of th e procedu re a dopted by th e BIFR is th a t a ll th e assets of the sick company would stand transferred to third parties, but the Case No.93/1987 M/s Alluminium Industries Ltd 5 m a jor portion of th e com pa n y s lia bilities viz sta tu tory du es, la bou r du es, du es of th e u n -s ecu red creditors wou ld be left beh in d in a s h ell com pa n y, with no recourse to these agencies/creditors to effect recovery of their dues. (c) Con s equ en t to th ree (3) s epa ra te s ch em es s a n ction ed by BIFR, th e workers of certa in u n its of th e com pa n y h a ve been given preferen tia l treatment over the other workers. (d) Th e order dt. 03/ 06/ 05 pa ss ed by BIFR u / s 22A of SICA is m is- con ceived. Th e order is pa ten tly illega l, es pecia lly a s it wa s iss u ed by th e Bench officer of the BIFR, without hearing the affected parties. (e) Th e th ree (3) in depen den t s ch emes were s a n ction ed by th e BIFR, with ou t a ddressin g th e con cern of a ll th e com pa n y s sta ke-holders, including the creditors and workmen etc. and such an action by the BIFR is in contravention to the provision(s) of SICA. (f) Th e process of in vitin g of offers for s a le/ h ivin g-off of th e com pa n y s unit(s) was/were not done in a transparent manner. (g) The valuation of the com pa n y s a ss ets wa s don e a bou t th ree (3) yea rs ba ck a n d th ere wa s a con sidera ble tim e-ga p between th e in vita tion of offers vis-à -vis fram in g-u p of th e DRS. Th e Ass ets Sa le Com m ittee (ASC) wa s n ot form ed, in term s of th e BIFR s order dt. 18.11.03. (h) Th e a u dited a ccou n ts of th e com pa n y were n ot relia ble, prim a rily beca u s e of qu a lifica tion m a de by th e a u ditors th erein . Wh en th e com pa n y s a ccou n ts were n ot a ccu ra te a n d th e com pa n y s a ss ets & lia bilities were a ls o n ot kn own , it wa s n ot possible to form u la te a com preh en sive reh a bilita tion scheme. 6. Fin a lly, Hon ble AAIFR, vide its order dt. 6 .2 .0 7 , had s e t aside BIFR s o rde rs dt. 3 .6 .0 5 and 2 6 .7 .0 5 (i.e . SS-05) a n d Hon ble AAIFR issued the following further directions:- (i) Th e Boa rd of Directors of ALIND s h a ll be recon stitu ted forth with to in clu de 3 pers on s to be n om in a ted a s Directors by th e existin g prom oters a n d th e n ew Directors s h a ll a ss u m e office im m edia tely on nomination. Case No.93/1987 M/s Alluminium Industries Ltd 6 (ii) Th e com pa n y s h a ll a ppoin t a firm of a u ditors from th e pa n el of approved auditors by C&AG to draw up the accounts and financial sta tem en t of ALIND, get th e s am e a u dited a n d a dopted in th e EGM within 16 weeks from the date of this order. (iii) Th e a u dited fin a n cia l sta tem en ts s h ou ld be filed with BIFR, wh o a re th erea fter directed to give a period of 4 weeks to th e existin g prom oters of ALIND to s u bm it a com preh en sive reh a bilita tion s ch em e to th e OA/ BIFR for ta kin g n ecess a ry fu rth er steps in accordance with law. (iv) In th e even t th e existin g prom oters a re u n a ble to s u bm it a com preh en sive reh a bilita tion s ch em e for ALIND with in th e stipu la ted period, BIFR s h ou ld explore oth er a ven u es for revivin g ALIND including the option of change of management. 6 (i). Bein g a ggrieved by th e orders pa ss ed by AAIFR, th e a pplica n t M/ s Volta Im p ex Ltd. (VIL) filed a WP No. 3369/ 2007, in th e Hon ble High Cou rt of An dh ra Pra des h (HCAP), ch a llen gin g Hon ble AAIFR s a bove order dt. 06/ 02/ 07 a n d HCAP pa ss ed a n interim order dt. 30/ 04/ 07, wh erein th e HCAP directed th e BIFR n ot to fin a lis e a n y s ch em e, till 30/ 06/ 07, if s u ch a s ch em e is s u bm itted by th e sick com pa n y M/ s AIL or by M/ s Un ited Sh ippers Ltd. (USL). HCAP a ls o perm itted th e com pa n y M/ s AIL to h old EGM on 26/ 05/ 07 for a doption th e com pa n y s a ccou n ts wh ich wa s reported to h a ve a lrea dy been a u dited. HCAP posted th e ca s e for h ea rin g again on 04/06/07. (ii) HCAP h ea rd th e WP No. 3369/ 07 on 11/ 06/ 07 a n d directed th a t th e interim order, ea rlier pa ss ed by HCAP on 30/ 04/ 07 wou ld sta n d exten ded u pto 18/ 06/ 07 a n d HCAP a ls o listed for ca s e for h ea rin g a ga in on 14/06/07. (iii). Th e a pplica n t M/ s VIL filed a M WP No. n o. 4304/ 2007 in r/ o th eir WP No. 3 369/ 2007 before HCAP a n d th e HCAP directed, vide its order dt. 14/ 06/ 07, th a t th e in terim ord er ea rlier pa ss ed on 30/ 04/ 07 wou ld Case No.93/1987 M/s Alluminium Industries Ltd 7 con tin u e u n til fu rth er order(s) a n d th e im plem en ta tion of direction s 3 & 4 iss u ed by th e AAIFR is its order dt. 06/ 02/ 07 with rega rd to s u bm ission of a reh a bilita tion s ch em e wou ld be s u bject to fu rth er order(s) th a t m igh t be pa ss ed in r/ o WP No. 3369/ 2007. HCAP posted th e ca s e for h ea rin g a ga in on 03/07/07. 7. Th e Boa rd received a copy of order da ted 23.5.2008 pa ss ed by th e Hon ble High Cou rt of Kera la . It h a s been sta ted in th e order th a t, th e BIFR s h a ll keep a clos e wa tch of th e fu n ction in g of th e com pa n y. It s h a ll be en s u red th a t th e prom oter s do n ot a llow th e com pa n y to go to ru in s . A n u m ber of repres en ta tion s h a ve been received in th e Boa rd s office from involved parties for evaluation of the present status of the case and issuance of necessary direction for the revival of the Company. 8.1 In th e h ea rin g h eld on 10.7.2008, th e Ben ch con sidered th e orders pa ss ed by th e Hon ble High Cou rts a n d th e order pa ss ed by Hon ble AAIFR. Th e deta ils of pen din g ca s es before th e Hon ble High Cou rts in res pect of the Company at present are as under:- S.No. High Court & W.P.No. Filed by Presents status/ Direction of the Court 1. Hon ble High Cou rt of Kerala Writ Petition No. 6625/07 K.Paulouse (Bidder for Relay Division Trivandrum) Filed with pra yer to s et a side th e AAIFR order da ted 6.2.2007. Th e Hon ble High Cou rt of Kera la vide order da ted 23.5.2008 dism iss ed th e WP with certain directions such as (a ) Needless to m en tion th e BIFR m a y h a ve to pla y a m ore pro-active role h en ceforth . It h a s be en s u red th a t th e prom oters do n ot fa il yet a ga in in th eir du ty to p u t th e Com pa n y ba ck on ra ils . (b) As m en tion ed ea rlier, th e BIFR Case No.93/1987 M/s Alluminium Industries Ltd 8 S.No. High Court & W.P.No. Filed by Presents status/ Direction of the Court s h a ll keep a clos e wa tch of th e fu n ction in g of th e Com pa n y. It s h a ll be en s u red th a t th e Prom oters do n ot a llow th e Com pa n y to go in to ru in s . 2. Hon ble High Cou rt of Kerala Writ Petition No. 12576/07 S.Mon y & Ors. On beh a lf of Retired Emp. Association Th e Writ Petition h a s been dism iss ed with dir ection th a t th e du es of th es e em ployees will be ta ken in to a ccou n t in th e Rehabilitation Scheme. 3. Hon ble High Cou rt of An dh ra Pradesh (a) Volta Im pex Ltd. (Bidder for Hyderabad Division) WP No.3369/07 (b) GVK Ltd. (GVK wa s a ls o a bidder a t th e la st stage) WP No 19189/07 (A) Filed with pra yer to s et a side th e AAIFR order da ted 6.2.2007. Th e Hon ble High Cou rt of An dh ra Pra des h vide order da ted 30.4.2007 ordered th a t a n y Reh a bilita tion Sch em e filed by th e Prom oter will n ot be fin a lized by th e BIFR u pto 10.6.2007. (B) Filed with pra yer to s et a side th e AAIFR order da ted 6.2.2007. Th is m a tter h a s been ta gged u p with th e WP No.3369/07. 4. Hon ble High Cou rt Alind Workers Filed by Un ion for crysta lliza tion of th eir du es a n d in corpora tion of th e Case No.93/1987 M/s Alluminium Industries Ltd 9 S.No. High Court & W.P.No. Filed by Presents status/ Direction of the Court of Orissa Union, Hirakund s am e in Reh a bilita tion Sch em e. Th e Hon ble High Cou rt vide order da ted 21.6.07 directed th a t Opposite Pa rty No.4 ( Un ited Sh ippers Ltd ) s h a ll n ot produ ce th e Sch em e before BIFR with ou t th e lea ve of th is Cou rt . 8.2. Th e Ben ch iss u ed th e followin g direction s in th e h ea rin g h eld on 10.7.2008:- (i) Th e Com pa n y s h a ll s u bm it copy of a ll th e orders pa ss ed by th e Hon ble High Cou rts to Boa rd a n d copy to Op era tin g Agen cy a n d secured creditors. (ii) Th e Com pa n y s h a ll crysta llize th e du es of workers of a ll u n its separately clearly indicating head wise and category wise in respect of present and retired employees. (iii) Th e Com pa n y s h a ll m a ke a ll efforts to s ettle th e sta tu tory du es a n d dues of the workers on priority basis. (iv) Th e Com pa n y s h a ll forwa rd th e Dra ft Reh a bilita tion Sch em e in res pect of a ll u n its except Hir a ku n d division wh ich m a y be filed with permission of the Hon ble High Cou rt of Oriss a . (v) Th e Com pa n y s h a ll ca rry ou t va lu a tion of its a ss ets th rou gh a n a pproved va lu er a ppoin ted by th e Sta te Ba n k of Tra va n core with in a m on th a n d s u bm it a copy of th e s am e to Boa rd a n d s ecu red creditors. (vi) Th e Com pa n y is on ce a ga in directed u / s. 22 of Sick In du stria l Com pa n ies (Specia l Provision s) Act, 1985 n ot to dis pos ed of, a lin a te or lea s e a n y fixed a ss ets, la n d, bu ildin g, Pla n t a n d Ma ch in ery without the consent of BIFR. (vii) Th e Opera tin g Agen cy (Sta te Ba n k of Tra va n cor e) s h a ll exam in e a ll th e docu m en ts/ eviden ces to a s certa in a s to wh eth er a n y a ction is Case No.93/1987 M/s Alluminium Industries Ltd 10 requ ired to be u n derta ken a ga in st th e Com pa n y u n der s ection 24 of SICA for m isfea s a n ce, m a lfea s a n ce, brea ch of tru st on th e ba sis of com pla in ts filed by workers u n ion a n d oth ers, a n d s u bm it its report to the Board within 6 weeks. (viii) Th e Boa rd will a p poin t 3 profession a l directors for th e Com pa n y, wh o will a ls o exam in e a ll th e fa cts a n d circu m sta n ces of th e ca s e a n d s u bm it th eir report to th e Boa rd for ea rly reviva l of th e Com pa n y within 2 months. (ix) Th e Opera tin g Agen cy s h a ll exam in e a n y Dra ft Reh a bilita tion Sch eme proposal in respect of 5 units except Hirkund division and submit the same to the Board for further necessary action in due course. 8.3 Th e Boa rd vide order da ted 24.9.08 iss u ed a corrigen du m to th e proceedings of the hearing held on 10.7.08. 9. In th e h ea rin g h eld on 21.4.09, th e Ben ch iss u ed th e followin g directions :- (i) Th e com pa n y s h a ll s u bm it a fu lly tied u p DRS a fter obta in in g th e con s en t of th e s ecu red creditors for OTS to Sta te Ba n k of Tra va n core (SBT)(OA) with in a period of 3 m on th s a s u n derta ken by th e com pa n y in th e h ea rin g toda y. Th e com pa n y a n d its prom oters a re pu t on n otice th a t u n less a fu lly tied u p DRS is received by th e Boa rd with in th ree m on th s, th e Ben ch m a y exam in e oth er option s u n der SICA in clu din g ch a n ge of m a n a gem en t in th e n ext h ea rin g a s th e referen ce of th e com pa n y has been pending with BIFR since 1987. (ii) M/ s. Pridh vi Ass et Recon stru ction a n d Secu ritiza tion Co. Ltd. (PARAS) s h ou ld s en d a copy of th eir im plea dm en t a pp lica tion da ted 28.11.2008 to th e com pa n y u n der copy to th e OA (SBT) with in a period of 15 da ys. Th e com p a n y m a y file th eir rejoin der with in a n oth er 15 da ys u n der copy to th e OA (SBT) a n d PARAS. The company should specifically state their legal objections, if any, Case No.93/1987 M/s Alluminium Industries Ltd 11 to a ssign m en t of debt to PARAS, a n ARC qu otin g th e releva n t provisions of law. (iii) Th e com pa n y s h a ll s u bm it th e orders, if a n y, pa ss ed by th e Hon ble High Cou rts of An dh ra Pra des h , Oriss a , Kera la a n d Hon ble Su prem e Cou rt of In dia from tim e to tim e. A copy of th is should be sent to SBT (OA) as well. (iv) Th e com pa n y s h a ll pa y a n OA fee of RS. 5 la kh plu s s ervice ta x and reimburse out of pocket expenses to the OA (SBT). 50% of the fee s h a ll be pa id with in 15 d a ys a n d th e ba la n ce m a y be pa id a t the time of submission of DRS by the OA. (v) Th e com pa n y s h a ll s u bm it copies of th e s ettlem en t en tered in to with th e workers of a ll th e u n its to th e OA (SBT) with in a period of 15 days. (vi) Th e com pa n y s h a ll s u bm it a list of u n s ecu red creditors in dica tin g the principal amount and the amount payable to them in the DRS. (vii) SBT (OA) s h a ll exam in e th e DRS s u bm itted by th e com pa n y, con du ct a join t m eetin g of a ll s ecu red creditors a n d Govern m en t Agen cies in volved a n d s u bm it a fu lly tie du p DRS with in on e m on th on receipt of th e DRS from th e com pa n y, if it em erges, for a ll th e u n its of th e com pa n y ta kin g in to a ccou n t th e du es of th e s ecu red creditors, workers a n d sta tu tory a u th orities a n d oth er creditors. (viii) M/ s. Vija y Electrica ls Ltd. s h ou ld n ot a tten d fu tu re h ea rin g a s th ey a re on ly a pros pective bidder a n d th ere is n o ch a n ge of management ordered in the case. (ix) SBT (OA) shall forward a copy of the valuation report on the assets of th e com pa n y a s directed in th e h ea rin g h eld on 10.7.2008 (Ref. pa ra 8.2(v) of th es e proceedin gs) a n d in form th e Boa rd th e n am e of th e a ssign ee of SBT s debt for Rs. 22 crore. (x) Th e com pa n y s h a ll s u bm it its a u dited ba la n ce s h eet a s on 31.3.2009 to SBT (OA) u n der copy to a ll s ecu red creditors a n d BIFR alongwith the DRS. (xi) The next hearing in the case will be held on 29.9.2009. Case No.93/1987 M/s Alluminium Industries Ltd 12 10.1 A Mis c. Applica tion da ted 17.8.2009 h a vin g registra tion No. 104/ BC/ 09 h a s been filed by M/ s. Prith vi Ass et Recon stru ction a n d Secu ritis a tion Com pa n y Ltd. (PARAS), wh erein it h a s been sta ted th a t Ba n k of Ba roda , a s ecu red creditor, vid e a n Assign m en t Agreem en t da ted 1.10.2008 a ssign ed a ll its debts du e from th e com pa n y a lon g with th e com pa n y s a ss ets to th e a pplica n t ARC, wh o is n ow en titled to ta ke a ll a n d every a ction to recover th e am ou n t du e from M/ s.Alu m in iu m In du stries Ltd. (AIL). It h a s been fu rth er sta ted th a t Sta te Ba n k of Tra va n core (OA) is a ls o on e of th e s ecu red creditors of th e sick com pa n y a n d th e com pa n y h a s s ettled th eir ou tsta n din g du es to SBT u n der On e Tim e Settlem en t (OTS). However, Sta te Ba n k of Tra va n core h a s tra n sferred th e s a id extin gu is h ed lia bility a n d th e s ecu rities to a th ird pa rty i.e. Kota k Ma h in dra Ba n k Ltd. u n der th e gu is e of a n a ssign m en t, wh ich is n ot perm issible u n der th e Tra n sfer of Property Act. Sta te Ba n k of Tra va n core h as also not provided the va lu a tion of th e com pa n y s a ss ets des pite in stru ction s by th e BIFR. An a ppropria te va lu a tion is, th erefore, ess en tia l for determ in a tion of th e iss u es pen din g before th e Boa rd. Th e a pplica n t ARC (PARAS) h a s pra yed in th e M.A. for the following:- i) To direct th a t th e th ird pa rty tra n sferee i.e. Kota k Ma h in dra Ba n k Ltd . is not a secured creditor. ii) To appoint an independent Government approved reputed valuer to value the assets of the company. 10.2 In th e Mis c. Applica tion (No.104/ 2009) h ea rin g h eld on 15.9.09 to con sider th e M.A., th e Ben ch directed th a t th e M.A. will be h ea rd with th e m a in ca s e fixed for h ea rin g on 29.9.09. M/ s.PARAS s h a ll s erve a copy of th eir M.A. on a ll th e con cern ed pa rties in clu din g KMBL a n d Ba n k of Baroda. 11. In th e h ea rin g h eld on 22.12.09, the Bench obs erved th at th e compan y h ad obtained cons en t of arou nd 60% of its s ecured cred itors. The compan y h ad y et to s e ttle w ith PNB, Can ara Ban k and PARAS , repres en ting Case No.93/1987 M/s Alluminium Industries Ltd 13 around 40% of the s ecured loan ou tstan d ing against th e compan y . Th e Bench issued the following directions:- (a) Sin ce a bou t 60% of th e debt of s ecu red creditors h a s been s ettled / a re s u pportin g th e DRS, PNB, Ca n a ra Ba n k a n d BOB/ PARAS a re directed to recon sider th e Com pa n y s offer of s ettlem en t a t 100% of its prin ciple du es, a t pa r with th e m a jority s ecu red creditors in clu din g KMBL wh ich h a s 43.44% of the total secured loan outstanding. In case they are unable to do so, and a viable DRS emerges, their dues wou ld, a s in oth er sim ila r ca s es, be recovered at the end of the rehabilitation scheme. (b) SBT (OA) to con ven e a m eetin g of repres en ta tives of workers a n d th e com pa n y on 19.1.2010 a t 1 1.00 A.M. a t its Hydera ba d office / Bra n ch . On e worker s union would depute one worker. (c) SBT (OA) to get a fres h va lu a tion of th e com pa n y s en tire a ss ets conducted by a repu ted va lu er a n d a n d s u bm its its report with in six weeks to the Board with a copy to the company and the secured creditors. (d) Th e com pa n y to s u bm it its r evis ed DRS in corpora tin g s ettlem en ts with th e s ecu red creditors, workers a n d th e reliefs a n d con cession s s ou gh t from th e sta tu tory a u th orities with in two m on th s to SBT (OA) a n d th e Board. If need be, the company may consider disposal of its surplus assets for revival. (e) SBT (OA) to con sider th e com pa n y s DRS in a join t m eetin g of a ll concerned a n d s u bm it its r eport a lon gwith a fu lly tied u p DRS, if it emerges, within further one month to the Board. (f) Pu rs u a n t to th e Hon ble AAIFR order da ted 8.12.2009, M/ s. Vija y Electrica l Ltd. are perm itted to a tten d th e h ea rin g. For th eir im plea dm en t, to awa it th e ou tcom e of th e h ea rin g in th e Hon b le AAIFR. (g) Th e com pa n y s h a ll s u bm it a propos a l in 15 da ys th rou gh th e OA for gra n tin g in terim relief to th e retired pers on n el, wh ich a re th e worst hit am on g th e la bou r a n d sta ff. Th e sta tu tory du es of la bou r h a ve a ls o to be remitted expeditiously. (h) PARAS to file its rejoin der to th e s u bm ission s m a de by th e com pa n y within 3 days to the Board with copy to OA and the company. Case No.93/1987 M/s Alluminium Industries Ltd 14 (i) Th e n ext h ea rin g in th e ca s e wou ld be h eld on 23.3.2010 a t 11.00 A.M. 12.1 M/ s Pridh vi Ass et Recon stru ction a n d Secu ritis a tion Com pa n y Ltd (PARAS) h a s filed a n Mis c. Applica tion registered vide No.124/ BC/ 2010 da ted 26.02.2010 pra yin g th e followin g direction s (a ) direct th e Registry to list th e a pplica tion of PARAS for h ea rin g a t th e ea rliest possible da te. (b) direct th e Registry to iss u e n otice to M/ s Alu m in iu m In du stries Ltd a n d their Counsel for the date of hearing, so fixed. 12.2 In th e Mis c. Applica tion (No.124/ 2010) h ea rin g h eld on 09.03.2010, the Bench issued the following directions :- (a) A Sh ow Ca u s e Notice (SCN) is h ereby iss u ed to PARAS a s to wh y cost s h ou ld n ot be im pos ed on th em for th eir a bs en ce in toda y s h ea rin g, retu rn a ble with in a week s tim e. Hea rin g of it be clu bbed with the main case. (b) The MA is dismissed for non-prosecution. 13.1 Sh ri Vija y Ku m a r, Advoca te on beh a lf of M/ s Pridh vi Ass et Recon stru ction a n d Secu ritis a tion Co. Ltd filed a n Mis c. Applica tion registered in BC Section vide No.399/ BC/ 2010, m a de th e followin g pra yer. (a ) Direct th e registry to list th e a pplica tion of M/ s Pridh vi Ass et Recon stru ction a n d Secu ritis a tion Com pa n y Ltd for s u bstitu tion , a t th e earliest possible date. (b) Direct th e Registry to iss u e n otice to M/ s Alu m in iu m In du stries Ltd for the date of hearing so fixed. (c) Pa ss a n y s u ch fu rth er order (s), direction (s), a n d / or relief (s) th a t th e lea rn ed Secreta ry, BIFR d eem s fit in th e fa ct a n d circu m sta n ces of th e case and in the interest of justice. 13.2 In th e Mis c. Applica tion (No.399/ 2010) h ea rin g h eld on 25.06.2010, th e Ben ch directed th a t th e Mis c. Applica tion No.399/ 2010 m a y be listed alongwith the main case in August, 2010. Case No.93/1987 M/s Alluminium Industries Ltd 15 14. In th e h ea rin g h eld on 9.8.2010, th e Ben ch iss u ed th e followin g directions: i) M/s. PARAS impleaded as a necessary party in this matter. The name of PARAS s h a ll be in clu ded in th e m a ilin g list of th is ca s e. PARAS s h a ll file certified copy of certifica te for registra tion with Res erve Ba n k of In dia a s a greed in toda y s h ea rin g. Th e MA filed by PARAS for im plea dm en t sta n d disposed of. ii) Sta te Ba n k of Tra va n core (Opera tin g Agen cy) s h a ll file a copy of va lu a tion report ca rried ou t by th e Ba n k a lon gwith ea rlier va lu a tion report ca rried ou t in 2007 a n d rea s on s for deprecia tion of a ss ets with referen ce to ea rlier report. Th e copy of th e va lu a tion report s h a ll a ls o be en dors ed to a ll the secured creditor. iii) Sta te Ba n k of Tr a va n core (Opera tin g Agen cy) s h a ll work ou t th e percen ta ge of s ecu red creditor s ettled a n d th e percen ta ge of th e rem a in in g secured creditor yet to be settled. iv) Sh ow Ca u s e Notice (SCN) is h ereby iss u ed to com pa n y retu rn a ble with in on e m on th a s to wh y Ch a n ge of Ma n a gem en t s h ou ld n ot be ordered in th is ca s e a s th e com pa n y h a s fa iled to s ettle th e s ecu red creditor a n d to file the fully tied draft rehabilitation scheme. v) Com pa n y s h a ll con sider relea sin g in terim relief to a ll its workers in clu din g th e retired em ployees a s a greed in toda y h ea rin g with in th ree week. vi) The Com pa n y s h a ll n egotia te with th e rem a in in g s ecu red creditor and th erea fter fu lly tied u p dra ft reh a bilita tion s ch em e with th e Op era tin g Agency and copy to Board within two months. vii) Th e du es of Ea st Coa st Meta l & Min era ls (P) Ltd. will be con sidered a t the time of sanctioned scheme. viii) Ca n a ra Ba n k s h a ll file its com m en ts on th e va lu a tion reports ca rried ou t by th e Sta te Ba n k of Tr a va n core a s a greed in toda y s h ea rin g with in a month time. Case No.93/1987 M/s Alluminium Industries Ltd 16 ix) Govern m en t of Kera la s h a ll file its com m en ts a s to wh eth er a ll th e u n its a re bein g con sidered for ta keover or on ly th e u n its loca ted in Sta te of Kerala as well its stand regarding takeover of the company. x) M/ s. Volta s Im pex Ltd s h a ll file th e copy of orders pa ss ed by th e Appella te Au th ority for In du stria l & Fin a n cia l Recon stru ction , Hon 'ble High Court and Hon'ble Supreme Court with the Board within one month. xi) Em ployees Sta te In s u ra n ce Corpora tion s h a ll file its written s u bm ission a bou t th e deta ils of ou tsta n din g du es with brea k u p of th e same. xii) Com pa n y a n d Opera tin g Agen cy s h a ll a llow Sh ri S.J oh n s on , Conven er, ALIND Workers Sam ra ks h n a Sam ith i, Ku n da ra , Kolam Distt. to a tten d a ll m eetin g with th e m a n a gem en t on th e iss u e of s ettlem en t of du es a s per orders of Hon 'ble High Cou rt of Kera la da ted 15.3.2010 a n d 26.5.2010 in Writ Petition No.8469/2010. xiii) The n am e of Sh ri S.J oh n s on , Con ven er, ALIND Workers Sam ra ks h n a Sam ith i, Ku n da ra , Kolam Distt. m a y be in clu ded in th e m a ilin g list of BIFR for iss u a n ce of a ll fu tu re n otices a n d Record of Proceedin gs a s pra yed by him in his written submission dated 25.2.2010. xiv) M/ s. Volta s Im pex Ltd s h a ll th eir a pplica tion for im plea dm en t a s a party in this case with a copy to the company within one month. xv) The Bench fixed the next date of hearing on 21.10.2010. 15. A Mis c. Applica tion No.595/ 2010 filed by M/ s Volta s Im pex Ltd., wh ich wa s h ea rd on 22.10.2010, wh erein th e Ben ch iss u ed th e followin g directions: i) M/ s Volta s Im pex Pvt Ltd to provide a copy of Mis c. Applica tion to Canara Bank. ii) Th e sick com pa n y is directed to be pres en t in th e n ext h ea rin g a n d is allowed to s u bm it its res pon s e to th is a pplica tion for im plea dm en t within 4 weeks. iii) Th e Mis c. Applica tion No.595/ 2010 will be h ea rd a lon gwith th e m a in case scheduled to be held on 03.01.2011. Case No.93/1987 M/s Alluminium Industries Ltd 17 16. Hea rin g for 03.01.2011 wa s res ch edu led for 03.02.2 011. The proceedin gs of th e h ea rin g h eld on 3.2.2011 cou ld n ot be iss u ed a s on e of the Members of the Bench had retired. 17. Th e Ben ch fu rth er obs erved th a t SOP for th e h ea rin g h eld on 21.02.2011 a n d 03 .02.2011 cou ld n ot be iss u ed du e to a dm in istra tive reasons. 18.1 In th e h ea rin g h eld on 27.04.2011, the Bench apprais ed all th e stak e- hold ers of th e compan y pres en t in the hearing th at th e last h earing in th is cas e w as held on 03.02.2011 and th e SOP of the hearing d ated 03.02.2011 could not be iss ued d ue to ad min istrative reas ons. S ubs equen tly th ere w as an Hon ble AAIFR Ord er d ated 31.01.2011, an d Hon ble AAIFR being a s uperior au thority to BIFR, BIFR h as to follow th e d irection of Hon ble AAIFR. Hon ble AAIFR vid e Ord er d ated 31.01.2011 obs erved th at . (from para 14) w e allow the appeal to th is exten t th at before the existin g m an agemen t of the compan y s ubmits a fully tied -up revival propos al, the fin ancial and oth er affairs of th e com pany of the last ten y ears s hould be investigated by a S pecial In vestigative Aud it (S IA) to be cond ucted by an in d epend en t firm of ch artered accoun tan ts through th e Operatin g Agency (OA) w ith in 3 mon th s. The report of S IA s h ould be th oroughly examin ed by OA; an d th e view s of the s ecured cred itors an d oth er concerned agencies s hould be obtained w ithin th e next one mon th. On th e basis of the S IA report and th e view s of th e OA an d other concerned agencies, BIFR m ay pass a s pecific reas oned ord er on th e application of ECMMPL (M/ s East Coast Me tals & Minerals Pvt. Ltd .) m ad e und er s ection 24 of S ICA. If on th e basis of the S IA report, BIFR com es to th e conclusion th at a viable revival s cheme is feasible u nd er the existing m an agem en t, only th en th e later m ay be as k ed to s ubmit a fully tied -up revival propos al for th e compan y w ith in a mon th thereafter an d BIFR s hould Case No.93/1987 M/s Alluminium Industries Ltd 18 th en tak e appropriate action in accord an ce w ith law . If on the basis of the S IA report an d the com men ts of OA and other concerned agencies, th e existin g m an agem en t is not consid ered tru stw orth y an d capable of und ertak ing the revival of the compan y or the company fails to s ubmit a cred ible revival propos al exactly w ithin th e given time, BIFR s hould explore th e possibility of revival th rough change of m an agem en t. Wh ile exploring ch ange of m an agem en t an opportun ity to the w ork ers un ions s hould als o be given, amon g others. We als o d irect th at u nd er s ection 22A of S ICA, th e existin g m an agem en t w ill not d is pos e of any ass ets of the compan y till a fin al d ecision is tak en by th e BIFR. If revival is not con sid ered feasible th rough any of thes e rou tes, BIFR m ay tak e appropriate action for w in d ing up of th e compan y in accord an ce w ith law . Thus, Hon ble AAIFR, s et asid e th e part of the impugned ord er of BIFR d ated 21.04.2009 as relates to s ubm ission of DRS by th e company and rem an d ed the cas e to BIFR w ith th e afores aid d irections for compliance. S ince this cas e is lingering on und er S ICA for a very long time since 198 7, Hon ble AAIFR d irect th at BIFR s hould hear th e cas e on w eek ly basis w ith ou t any long ad journmen ts and d ecid e th e m atter positively w ith in six mon th s from th e d ate of iss ue of th is ord er. A copy of th is ord er be forw ard ed to the BIFR im med iately an d parties are d irected to appear before BIFR on 21.02.2011. 18.2 The Bench obs erved th at parties pres en t in th e hearing h ad heard the d irections of Hon ble AAIFR. The Bench als o obs erved th at th e Appeal (No.138/ 2 009) filed by M/ s Vijay Electricals Ltd (VEL) h as als o been d is miss ed by Hon ble AAIFR, accord ingly , th e n ame of M/ s VEL is d eleted from th e list of parties. Ha vin g con sidered th e s u bm ission s m a de in th e hearing and material on record, the Bench issued the following directions :- (a) Sta te Ba n k of Tr a va n core (OA) is d irected to get a Specia l In vestiga tive Au dit (SIA) con du cted on th e a ffa irs of th e Com pa n y for Case No.93/1987 M/s Alluminium Industries Ltd 19 the la st 10 yea rs. SIA s h ou ld be con du cted by a n in depen den t firm of Ch a rtered Accou n ta n t, wh o a re a lrea dy on th e pa n el of SBT (OA). Th e rem u n era tion of CA will be a s per th e Ba n ks sta n da rd ra te. Th e cost of a ppoin tm en t of CA to con d u ct SIA will be born e by th e Com pa n y. SBT (OA) is directed to com plete SIA with in a period of (03) th ree m on th s a n d s u bm it its report to th e Boa rd with copy to th e Com pa n y, and all its secured creditors. (b) SBT (OA) is also directed to obtain the relevant information from earlier m a n a gem en t of th e com pa n y s a ffa irs du rin g th eir ten u re prior to 2007 i.e before th e in du ction of pres en t m a n a gem en t viz Som a n i Grou p. Th e Com pa n y s h ou ld a ls o exten d a ll its s u pport to SBT (OA) a n d in ca s e th e com pa n y does n ot co-opera te, SBT (OA) is directed to approach the Board and seek further direction. (c) All th e s ecu red creditors of th e com pa n y a re directed to s u bm it their suggestion / objections on the report of SIA to the Board within a further period of 10 days, with copy to SBT (OA). (d) SBT (OA) is fu rth er directed to s u bm it a con s olida ted report on the views of secured creditors within a further period of three months. (e) Th e Com pa n y is directed th a t it m a y con sider re-sta rtin g th e opera tion a t Ku n d a ra u n it, a s desired by va riou s workers in th e h ea rin g. Th e Com pa n y is a ls o directed th a t it m a y con sider relea sin g interim relief to its workers, if any. (f) M/ s Vija y Electrica ls Ltd (VEL) is deleted from th e list of pa rties / mailing list. (g) Ba n k of Ba roda is exem pted for a tten din g fu tu re h ea rin g in th is case. The name of Bank of Baroda be deleted from the mailing list. Case No.93/1987 M/s Alluminium Industries Ltd 20 (h) The next date of hearing in this case is fixed on 15.09.2011. The hearing fixed for 15-09-2011 has been cancelled. 19.1 In toda y s h ea rin g (30-01-2012), th e Ben ch n oted th a t a n u m ber of representatives from Workers Union a re pres en t in th e h ea rin g a n d announced th a t th e Ben ch will con sider only th e views/ com m en ts on th e Special Investigative Audit (SIA) report in toda y s h ea rin g. 19.2 Th e repres en ta tive of SBT (OA) sta ted th a t in com plia n ce of th e Ben ch direction s, Specia l In vestiga tive Au dit (SIA) h a ve been con du cted by M/ s Loon ker & Co. A copy of th e s am e wa s forwa rded to th e Boa rd s office on 06-09-2011. Copies of SIA report wa s a ls o forwa rded to a ll th e s ecured creditors in Sep 2011, a s kin g th em to file th eir com m en ts on th e report with in a p eriod of 10 da ys. Th ree of th e s ecu red creditors viz PARAS, IDBI a n d CARE h a d filed th eir com m en ts. KMBL h a s a ls o provided its com m en ts toda y ju st before th e h ea rin g. ICICI, Ca n a ra Ba n k a n d Pu n ja b Na tion a l Ba n k a re yet to s u bm it th eir com m en ts on SIA. Th e Ben ch en qu ired wh a t are discrepancies n oted in SIA, th e repres en ta tive of SBT (OA) sta ted th a t th ey h a d n ot obs erved a n y diversion of fu n ds by th e prom oters. Th e com pa n y h a s a ls o n ot crea ted a n y n ew ch a rges on th e fixed a ss ets of th e com pa n y du rin g th e la st 10 yea rs. Th e com pa n y h a s n ot dis pos ed a n y pa rt of its fixed a ss ets. Th e com pa n y h a s defa u lted in repa ym en t of Deben tu res a n d redem ption of preferen ce s h a res. Th e repres en ta tive of SBT (OA) a dded th a t n o s evere la ps es were fou n d in the Specia l In vestiga tive Au dit (SIA) report. Th e Ben ch en qu ired wh eth er SBT (OA) h a d provided th e copy of SIA to th e com pa n y, th e repres en ta tive of OA (SBT) sta ted th a t th ey h a d a lready provided th e s am e in Sep 2011 its elf. Th e Ben ch th en en qu ired from th e com pa n y wh eth er th ey h a d filed th eir com m en ts on th e SIA report, th e Director of th e com pa n y sta ted th a t th ey were n ot awa re th a t th e com pany h a d to file its com m en ts, a n d requ ested th e Ben ch to gra n t on e week s tim e for submitting their comments. Case No.93/1987 M/s Alluminium Industries Ltd 21 19.3 Th e repres en ta tive of Ca n a ra Ba n k sta ted th a t th ey h a d received SIA report from OA (SBT) and they have no comments to offer. 19.4 Th e Ld. Advoca te repres en tin g Govt. of Kera la sta ted th a t th ey have not received copy of the SIA report. The Bench directed OA (SBT) to provide a copy the report to Govt. of Kera la . Th e repres en ta tive of OA (SBT) sta ted th a t h e will provide a copy toda y its elf. Th e Ld. Advoca te repres en tin g Govt. of Kera la requ ested th e Ben ch to gra n t th ree weeks tim e to file th eir comments. 19.5 Th e repres en ta tive of Pu n ja b Na tion a l Ba n k sta ted th a t th e Ba n k will file its comments on SIA within a fortnight. 19.6 Th e repres en ta tive of ICICI Ba n k sta ted th a t th e Ba n k h a s n o comments on the SIA report. 19.7 Th e repres en ta tive of Kota k Ma h in dra Ba n k sta ted th a t th e Ba n k h a d already filed their comments on the SIA report. 19.8 Th e Ld. Advoca te repres en tin g Pridh vi Ass et Recon stru ction & Secu ritis a tion Co. Ltd (PARAS) sta ted th a t th ey h a ve a lrea dy filed th eir com m en ts on SIA b efore th e Boa rd s office. He fu rth er sta ted th a t a fres h chance be given to th e pres en t prom oters to pu t forth a n u pda ted a n d revised DRS for revival of the company and safeguard the interest of secured creditors and its workers. 19.9 Th e repres en ta tives of Allu m in iu m In du stries Em ployees Un ion , ALIND Steel Wire Pla n t Em ployees Un ion , Ku n dra Allu m in iu m Fa ctory Worker s Un ion , ALIND Em ployees Un ion Reviva l Com m ittee, ALIND Steel Pla n t Worker s Con gress, ALIND Worker s Un ion (CITU), Alluminium In du stries Con tra ct Workers Un ion , U. Elia zer Retd Em ployees Welfa re Ass ocia tion a n d ALIND Switch gea r Em ployees Ass ocia tion filed th eir written s u bm ission to th e Ben ch du rin g th e cou rs e of h ea rin g. Th e Ben ch directed Case No.93/1987 M/s Alluminium Industries Ltd 22 Ben ch Officer to h a n d over a ll th e written s u bm ission s to OA (SBT) a n d directed OA (SBT) to file its comments/report to the Board within a period of two weeks. 19.10 Th e Ld. Advoca te repres en tin g th e com pa n y sta ted th a t a s per Specia l In vestiga tive Au dit (SIA) report, th e a llega tion s of u n a u th orized s a les of a ss ets a n d diversion of fu n ds were ba s eless a n d fa ls e. He a dded th a t 03 (th ree) u n its of th e com pa n y viz. Ma n n a r, Triva n dru m a n d Hydera ba d a re opera tion a l. Th e com pa n y h a s a ch ieved a tu rn over of Rs.15.00 crores for th e cu rren t yea r. Th e com pa n y pres en tly em ploys 463 workers. Th e pres en t m a n a gem en t of th e com pa n y is in terested in revivin g a ll th e u n its of th e com pa n y with th e s u pport of BIFR, Govern m en t of Kera la a n d oth er sta ke h olders. Th e com pa n y h a d a lrea dy filed th e DRS before th e Boa rd, h owever, it wa s n ot con sidered s o fa r, a n d th e prom oters a re rea dy to u pda te th e s am e. Th e prom oters of th e com pa n y h a d dis cu ssion s with Govern m en t of Kera la , wh o h a d a greed to s u pport th e pres en t prom oters for sta rtin g opera tion of Ku n dra Un it. He requ ested th e Ben ch to give a s h ort da te to th e pa rties wh o h a ve yet to file th eir com m en ts on Specia l Investigative Audit (SIA). 19.11 The Special Commissioner from the office of Resident Commissioner, Govt. of Kera la (n ot sign ed) sta ted th a t th e Sta te Govern m en t h a d h eld a h igh level m eetin g a n d it wa s decided to s u pport th e existin g prom oters of th e com pa n y s u bject to sta rtin g opera tion of Ku n dra u n it with in a s pecified period of time. 19.12 The Bench obs erved th at the Un ions to file their com m en ts/ objections if any on S pecial In vestigative Aud it (S IA) to the Operatin g Agency (S tate Ban k of Travancore). 20. Ha vin g con sidered th e s u bm ission s m a de in th e h ea rin g a n d m a teria l on record, the Bench issued the following directions:- Case No.93/1987 M/s Alluminium Industries Ltd 23 (a) Govt. of Kera la to file its com m en ts on Specia l In vestiga tive Au dit (SIA) to OA (SBT), with in a period of th ree weeks, a s a greed by th em in toda y s h ea rin g. (b) Th e com pa n y to file their com m en ts on Specia l In vestiga tive Audit (SIA) to OA (SBT) within a period of one week. (c) Pu n ja b Na tion a l Ba n k to file its com m en ts on Specia l Investigative Audit (SIA) to OA (SBT) within a period of two weeks. (d) Th e u n ion s of th e com pa n y wh o wis h to file objection are directed to file th eir com m en ts on Specia l In vestiga tive Au dit (SIA), if any, to OA (SBT) within a period of two weeks. Thereafter, OA (SBT) is directed to file a con s olida ted report to th e Boa rd, with in a fu rth er period of two weeks. (e) The Bench fixed the next DOH on 28 Mar 2012. Let a copy of this order be circulated to all concerned. (Y. K. GAIHA) (NIRMAL SINGH) MEMBER CHAIRMA