Delhi High Court Rr Kabel Limited vs M/S Incab Industries Ltd. & Ors. on 24 April, 2014 $~S1 to 4 * Reserved on: 3rd October, 2013 % Date of decision: 24th April, 2014 + W.P.(C) 5010/2011 & 10169/2011 RR KABEL LIMITED ..... Petitioner versus M/S INCAB INDUSTRIES LTD. & ORS. ..... Respondents + W.P.(C) 5971/2011 PEGASUS ASSETS RECONSTRUCTION PVT. LTD. ..... Petitioner versus TATA STEEL LIMITED AND ORS ..... Respondents + W.P.(C) 5954/2011 & C.M.No.12050/2011 INCAB SRAMIK SANGH & ORS ..... Petitioners versus APPELLATE AUTHORITY FOR INDUSTRIAL & ORS ..... Respondents + W.P.(C) 5197/2011 & C.Ms.No.10541/2011, 219/2012, 3077/2012. ALL INDIA INCAB INDUSTRIES EMPLOYEES FEDERATION & ORS. ..... Petitioners versus AAIFR & ORS. ..... Respondents W.P.(C) Nos.5010, 10169, 5971 of 2011, 5954/2011 & C.M.No.12050/2011, W.P.(C) No.5197/2011 & CMs.No.10541/2011, 219/2012, 3077/2012 Page 1 of 52 Present: Mr Rajiv Nayyar, Sr.Adv. with Ms B.Sunita Rao, Mr Darpan Wadhwa, Mr Anil, Advs. for R.R.Kable Ltd. Mr Prateek Jalan, Mr Aditya Sharma, Adv. for Fesqua and Kamla Mills. Mr Vivek Sibbal, Sr.Adv. with Mr.Ankur S.Kulkarni, for INCAB Industries. Mr R Dushyant Dave, Senior Adv. with Mr Tarun K.Banga, Adv. for respondent/Tata Steel Ltd. Mr Vikas Singh, Sr.Adv. with Mr Sanjiv Sen, Mr Sameer Dewan, Mr S.C.Pant, Advs. for for respondents No.14,20,21,27,36,53,58 in CWP No.5010/2011, respondents No.14,21,22,28,36, 47, 59 in CWP No.5971/2011, respondents No.15, 22, 23, 29, 46 in CWP No.5197/2011, respondents No.15, 22, 23, 28, 46 in CWP No.5954/2011. Mr Barun Kumar Sinha, Adv. with Ms Pratibha Sinha and Mr Aayush Raj, Adv. in WPC Nos. 5954/11, 5197/11, 5010/11, 5971/11. HON'BLE MR. JUSTICE BADAR DURREZ AHMED HON'BLE MR. JUSTICE R.V. EASWAR R. V. EASWAR, J.: 1. In these proceedings, under Article 226 of the Constitution of India the petitioners have called in question the order passed by the Appellate W.P.(C) Nos.5010, 10169, 5971 of 2011, 5954/2011 & C.M.No.12050/2011, W.P.(C) No.5197/2011 & CMs.No.10541/2011, 219/2012, 3077/2012 Page 2 of 52 Authority for Industrial and Financial Reconstruction ("AIFR"), New Delhi on 30.6.2011 in the following circumstances. 2. M/s Incab Industries Ltd (hereinafter referred to as IIL) was a sick industrial company. Some time in October, 1999 a reference was made by it to the Board for Industrial and Financial Reconstruction (hereinafter referred to as "BIFR") and it was declared a sick industrial company by an order passed by BIFR on 4.4.2000. The State Bank of India ("SBI") was appointed as the Operating Agency ("OA") under section 17(3) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "SICA") to examine the viability of the company and submit a rehabilitation scheme. There were several teething troubles in the preparation of the rehabilitation scheme, the details of which need not detain us. After several years there were three proposals submitted by the following companies for rehabilitation of the sick company : Silver Jubilee Infrastructure Ltd. (SJIL), R.R. Kabel (RRK) and Land Lease Co. Ltd. (LLC). These proposals were examined by the OA which also held discussions with the propounders. Several rounds of litigation followed thereafter. In the meantime two other companies also joined the fray and they are Pegasus Assets Reconstruction Pvt. Ltd. (PARL) and TATA Steels Ltd. (TSL). They had also submitted draft rehabilitation schemes. W.P.(C) Nos.5010, 10169, 5971 of 2011, 5954/2011 & C.M.No.12050/2011, W.P.(C) No.5197/2011 & CMs.No.10541/2011, 219/2012, 3077/2012 Page 3 of 52 The matter reached the Delhi High Court and the Supreme Court which gave certain directions vide order dated 14th May, 2009. Pursuant to this order thr