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Proceedings after 2010

10. The ex-Management of the company filed CA No. 2352 of 2010 proposing a scheme for revival of the company. By a detailed order dated 24th May 2011, the Company Court dismissed the said application. One of the reasons was that the scheme was opposed by the lead Bank i.e. Dena Bank. On the following date, i.e. 25th May 2011, the Court directed that the remaining unit of the company at Faridabad should also be sold. ITCOT Consultancy and Services Ltd. (ITCOT) was directed to file its valuation report within six weeks and upon receipt of the report, the OL was directed to convene a meeting of the secured creditors to finalise the draft sale notice.

16. The ex-Management filed an application stating that it had filed an appeal against the order passed by the PFC in the Employees Provident Fund Appellate Tribunal and therefore disbursement in favour of the PFC should be stayed till such time the appeal is not decided. This plea was accepted by the order dated 4th January 2013 in Co. Appl. No. 2537 of 2012 in Co. Pet. No. 539 of 1998.

17. ITCOT submitted its report of valuation of the Faridabad Unit. Copies thereof have been made available to learned counsel for the secured creditors, the workmen and the ex-Management. Copies of ITCOT's report of valuation of the movable assets and articles of the company at its branch office in Chennai have also been made available to learned counsel for the parties.

46. CA No. 145 of 2013 and CA No. 302 of 2013 are disposed of with the above directions.

CA 835 of 2013

47. In CA No. 835 of 2013, the OL has filed a reply stating that the claim has been scrutinised by the Dhingra Committee and has been admitted and that the amount will be disbursed along with the other workmen. The said statement is taken on record and the application is disposed of as such.

48. CA Nos. 835 of 2013 is accordingly disposed of.

Draft sale notice for the Faridabad unit

49. Copies of the report submitted by ITCOT have been provided to the secured creditors. In the Report No. 437 of 2013 filed by the OL, it is stated that the meeting of the secured creditors was held on 14th June 2013 for finalising the draft sale notice. The Consortium of Banks ('COB'), by the letter dated 19th June 2013, were not agreeable to the ITCOT on the ground that it was on the lower side. They accordingly wanted the properties and assets at Faridabad to be re-valued. However, IFCI accepted the valuation of ITCOT stating that the present valuation may attract some buyers. IFCI is also agreeable to maintaining the earnest money at 10% of the valued price. However, in view of the objections raised by the COB, the draft sale notice could not be finalised.

51. Having considered the above submissions, and having examined the valuation report of the valuer engaged by the COB, the Court is inclined to concur with the view expressed by the OL that the valuation report of ITCOT is more authentic. ITCOT has been rendering assistance to the Court with its reports from time to time. The Court finds that ITCOT adopts a scientific approach. It is an independent authority and it has gone by the circle rate as well as the market rates. A large number of years have already gone by in trying to dispose of these assets. There is an urgent need to realise the best possible price and make available more funds for disbursing payments to the workmen and secured creditors.