IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIFTEENTH DAY OF APRIL TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI ANIL R. DAVE, THE CHIEF JUSTICE and THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 7634 of 2009 Between: M/s. Sujala Pipes Pvt. Ltd. C-1 Industrial Estate, Nandyal, Kurnool District, represented by its Managing Director Sri S.P.Y.Reddy S/o.S.Konda Reddy C-1 Industrial Estate, Nandyal, Kurnool District. ..... PETITIONER AND 1 M/s. Monarch Pipes (P) Limited (under Liqn.) represented Provisional Liquidator (Official Liquidator), High Court of Andhra Pradesh, Hyderabad. 2 State Bank of India, Stressed Assets Management Branch, Near HPO, Secunderabad represented by its Deputy General Manager. 3 The General Manager, A.P. Industrial Development Corporation Limited, Parishrama Bhavan, 5-9-58/B, Basheerbagh, Hyderabad. 4 The Deputy General Manager, A.P. State Financial Corporation, 5-9-194, Chirag Ali Lane, Hyderabad. .....RESPONDENT(S) Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed herein the High Court will be pleased to issue an order or Writ more particularly one in the nature of Writ of Mandamus holding that the order passed by the A.A.I.F.R. dated 24.02.2009 against the Petitioner Company herein, by not exercising the jurisdiction and powers vested in it under Section 13 (2), 17, 18 (2) (j) of the Sick Industrial Companies (Special Provision) Act 1985 is illegal and against the principles of natural justice, violative of Article 14, 16 and 21 of the Constitution of India and in contravention to the provisions of the Sick Industrial Companies (Special Provision) Act 1985, and further to set aside the orders dated 24.02.2009 passed by the AAIFR directing the AAIFR to adjudicate with regard to the issue of lease or any other standing taking into consideration the record and Balance Sheet and Profit and Loss Accounts of the Respondent No.1 Company in so far the Petitioner Company herein concerned and pass. Counsel for the Petitioner: MR.P.BADRI PREMNATH Counsel for Respondent No.1: OFFICIAL LIQUIDATOR Counsel for Respondent No.2: Sri M. Narender Reddy Counsel for Respondent No.4: Sri Y.V. Ravi Prasad The Court made the following : ORAL ORDER: (Per Sri Ramesh Ranganathan, J) This writ petition is filed against the order of the Appellate Authority for Industrial and Financial Reconstruction, New Delhi (AAIFR) dated 24-02-2009 wherein certain observations were made with regards the petitioner having taken the factory of the 1st respondent on lease and its liability to pay the lease rentals. 2. Sri P. Badri Premnath, learned counsel for the petitioner would contend that such observations, either in the order of the Board of Industrial and Financial Reconstruction (BIFR) or the AAIFR under the Sick Industrial Companies (Special Provisions) Act, 1985, is not binding on the Company Court in proceedings for winding up of the 1st respondent – Company. According to the learned counsel, despite this settled legal position, the petitioner apprehends that the observations made in the order of the AAIFR may be construed by the learned Company Judge as binding. 3. It is evident that no order has as yet been passed by the learned Company Judge. We see no reason to record any observations in this order which could be construed as advising the learned Company Judge of the manner in which he should pass an order in winding up proceedings. The submissions made before us can as well be urged by the petitioner before the learned Company Judge. Since the petitioner is, admittedly, not aggrieved by the order of the AAIFR confirming the order of the BIFR in recommending that the 1st respondent – Company be wound up, we see no reason to interfere with such orders or to make any observations as requested by the learned counsel for the petitioner. 4. The writ petition fails and is, accordingly, dismissed. However, in the circumstances, without costs. ANIL R. DAVE, CJ RAMESH RANGANATHAN, J 15th April, 2009. ks