The Hindu : Karnataka / Bangalore News : Court urged to stay NGEF liquidation

Online edition of India's National Newspaper
Thursday, Jan 04, 2007
ePaper

Karnataka

Karnataka - Bangalore

Court urged to stay NGEF liquidation

Staff Reporter

Centre moved on the revival of factory

BANGALORE: The liquidation proceedings of the New Government Electric Factory (NGEF) on Wednesday took an unexpected turn when the State Government urged the Karnataka High Court to stay the liquidation proceedings or grant it leave so that it could place before the Centre the revival package for the factory.

The State said that it had already approached the Centre on the issue of revival of the now defunct NGEF and also filed an application before it under Section 620 of the Companies Act.

Appearing for the State, Advocate-General Uday Holla said the Act empowered the Centre to look into such revival packages for units and that the State had filed one such application.

He said the State had filed the application with the Centre on September 20 and a copy of it had been sent in November to the official liquidator (OL) of the NGEF.

He said if the court did not want to stay the liquidation proceedings, it could at least grant leave so that it could peruse the application before the Centre.

He mentioned that he had come before the court as he wanted to place all the facts before it and ensure that it was not "bypassed". Moreover, the bureaucrats were scared to go ahead with the application as the issue was in the court. He said the court could give a limited stay for at least six months so that the State could consider the application filed under Section 391 of the Companies Act before the Centre. He said he would place the package before the High Court after it was decided by the Centre.

Justice Rammohan Reddy, who is hearing the case, said Section 446 (2) (C) did not exclude the court from going ahead with the proceedings. He then asked both the Advocate-General, the OL and other parties to look into the issue and assist the court in taking a decision.

Printer friendly page
Send this article to Friends by E-Mail

Karnataka