The Hindu : Tamil Nadu / Chennai News : Court sets aside BIFR order

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Wednesday, Sep 19, 2007
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Tamil Nadu

Tamil Nadu - Chennai

Court sets aside BIFR order

Special Correspondent

CHENNAI: The Madras High Court has set aside an order of the Board for Industrial and Financial Reconstruction (BIFR), dated October 7, 2005, discharging the B&C Mills from the Board’s purview for the purpose of a rehabilitation scheme.

Justice M. Chockalingam passed the order on a writ petition jointly filed by the B&C Mills Staff Union and the Madras Labour Union.

Referring to the rehabilitation schemes presented to the BIFR since 1993 and the difficulties in implementing an acceptable package since then, the petitioner-unions said that they had written to the BIFR on December 11, 2006 seeking its intervention and for appropriate relief for workmen.

In its reply on December 26, 2006, the BIFR informed them that the Mill had been discharged from the purview of the Board on October 7, 2005 pursuant to certain proceedings in August and October 2005.

N.G.R. Prasad, counsel for the petitioners, pointing out that the unions were not parties to either of the proceedings, said the BIFR was to monitor the rehabilitation scheme and that it had failed to follow the principles of natural justice. While there was no appearance for the BIFR, A. Jenasenan, counsel for the mill, said it stood as a company as it was not a sick unit. Mr. Justice Chockalingam, concurring with Mr. Prasad’s submissions, said the only grievance of the petitioner-unions was that their petition to the BIFR was rejected without an opportunity of being heard.

Setting aside the impugned order, the Judge then directed the BIFR to give an opportunity to both sides to put forward their case, follow procedural formalities and pass suitable orders on merits within three months.

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