Case No.

509/1992 : M/S Richardson & Crudas Ltd

BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

MISCELLANEOUS APPLICATION No.621/2013
CASE NO. 509/1992 : M/S. RICHARDSON & CRUDDAS (1972) LTD.
SUMMARY RECORD OF PROCEEDINGS OF THE HEARING HELD ON
24.06.2014 BEFORE THE BENCH CONSISTING OF
SHRI B.S.MEENA, CHAIRMAN AND SHRI J.P.DUA, MEMBER
BENCH-I
Present

Name & Designation of the

Representatives S/Shri/Ms

M/s. Richardson & Cruddas

(1972) Ltd.

P.K.Kothari, CMD

State Bank of India (SBI) (OA)

D.N.Mathur, AGM

M/s Kalpataru Power

Transmission Ltd.
(Applicant MA 621/2013)

Rajesh Bohra, Advocate

Sangeeta Bohra, Advocate

DIT(R)

D.R.Jain, Advocate

Anand Agarwal & Associates

K.K.R.Das, Consultant
*****

1.1

A s ch em e for r eh a b ilita tion of th e s ick in d u s tr ia l com p a n y, M/ s

Rich a r d s on & Cr u d d a s (1 9 7 2 ) Ltd . (RCL), was s a n ction ed b y th e Boa r d vid e

or d er

d a ted

1 4 .1 1 .9 5

u n d er

Section

1 8 (4 ) r ea d

with

S ection

1 9 (3 )

(h er ein a fter r efer r ed to a s th e Act). Th e s ch em e en vis a ged th e n et wor th of

th e s ick com p a n y b ecom in g p os itive in

th e fir s t yea r its elf i.e., b y

3 1 .0 3 .1 9 9 6 , a n d th e a ccu m u la ted los s es wer e to b e fu lly wip ed ou t b y

31.03.2002.

1.2

Th is s ch em e however was subsequently fou n d to h a ve fa iled to r evive

th e com p a n y, a n d wa s a ccor d in gly d ecla r ed fa iled b y th e Boa r d vid e order

d a ted 2 1 .1 .2 0 0 2 . ICICI wa s a p p oin ted a s th e Op er a tin g Agen cy u / s 1 7 (3 ) of
th e Act, a n d wa s d ir ected to is s u e a n a d ver tis em en t for ch a n ge of

Case No. 509/1992 : M/S Richardson & Crudas Ltd

management (COM). Th e Boa r d vid e or d er d a ted 9 .1 0 .2 0 0 2 d ir ected th a t a

Show Cause Notice (SCN) be issued for winding up the company.

1.3

A hearing in the case was held on 17.12.2002.

1.4

Th e Boa r d vid e or d er d a ted 2 5 .0 7 .2 0 0 3 , con fir m ed its p r im a -facie

opinion that the sick industrial company

M/S Richardson & Crudas (1972)

Ltd (RCL) be wound up u/s 20(1) of the Act.

1 .5

Th r ee a p p ea ls wer e filed in Hon b le AAIFR a ga in s t BIFR or d er d a ted

2 5 .0 7 .0 3 .

Fir s t a p p ea l No. 3 9 2 / 2 0 0 3 wa s filed b y th e com p a n y RCL, th e

s econ d a p p ea l No. 3 9 5 / 2 0 0 2 wa s filed b y Un ion of In d ia , a n d t h e th ir d

a p p ea l No. 2 2 2 / 0 4 wa s filed b y RCL E m p loyees Un ion .
vide

order

dated

24.9.2007

set

aside

Th e Hon b le AAIFR

t h e win d in g u p or d er a n d

r em a n d ed th e ca s e to BIFR a n d d ir ected th a t th e p a r ties con cer n ed m u s t

a p p r oa ch th e BIFR with in a p er iod of eigh t week s fr om th e d a te of s a id
AAIFR or d er

with con cr ete p r op os ition s , p la n of a ction a n d ob ta in fu r th er

d eta iled d ir ection s fr om

BIFR a n d , th er ea fter , s u b m it a p r op os a l a s

exp ed itiou s ly a s p os s ib le with in th e tim efr a m e to b e d ecid ed b y BIFR to

enable the Board thereafter to proceed further according to law.

1.6

Fu r th er h ea r in gs in th e ca s e wer e h eld on 2 0 .1 1 .2 0 0 7 , 30.3.2009,

27.5.2009, 1 0 .9 .2 0 0 9 , 17.3.2010(MA), 8.4.2010, 3 0 .8 .2 0 1 0 , 1 0 .3 .2 0 1 1 ,

2 3 .6 .2 0 1 1 ,

1 6 .1 1 .2 0 1 1 (MA),

3 0 .1 1 .2 0 1 1 (MA),

2 .1 2 .2 0 1 1 (MA),

8.12.2011(MA), 12.1.2012(MA), 16.1.2012(MA), 24.2.2012(MA-50), 7.5.2012,

11.5.2012(MA), 25.7.2012, 29.10.2012, 1 5 .1 1 .2 0 1 2 (MA-417), 03.12.2012
(MA-417) and 21.01.2013 before the Board.

1.7

Th e a d voca te on b eh a lf M/ s Ka lp a ta r u Power Tr a n s m is s ion Ltd . filed

Miscellaneou s Ap p lica tion No. 621/BC/2013 d a ted 3.12.2 0 1 3 r equ es ting

th e Boa r d to d ir ect S ta te Ba n k of In d ia

S tr es s ed As s ets Ma n a gem en t

Br a n ch , Mu m b a i (S BI(OA)), to r etu r n E MD of Rs . 6 .8 0 cr or es d ep os ited vid e

Case No. 509/1992 : M/S Richardson & Crudas Ltd

Ter m Dep os it Ad vice- Accou n t No. 3 1 8 8 6 6 1 1 3 5 3 d t. 1 6 .8 .2 0 1 1 (r en ewed

Term Deposit Advice No. 33221299298) to the Applicant along with a release
letter a d d r es s ed to S ta te Ba n k of In d ia , Com m er cia l Br a n ch , Ah m ed a b a d ,
permitting the Applicant to liquidate above EMD.

1.8

In th e h ea r in g h eld on 1 1 .1 2 .2 0 1 3 in MA No. 6 2 1 / 2 0 1 3 , th e Ben ch

issued following directions:

(i)

The a p p lica n t (M/ s Ka lp a ta r u Power Tr a n s m is s ion Ltd .)

s er ve cop y of th e Mis c. Ap p lica tion

(No.6 2 1 / 2 0 1 3 ) on

to a ga in
a ll t h e

concerned agencies within a period of one week.

(ii)

All th e con cer n ed a gen cies to file th eir r ep ly with in a fu r th er p er iod of

two week s with cop y to th e a p p lica n t. Th er ea fter , th e a p p lica n t (M/s
Ka lp a ta r u Power Tr a n s m is s ion Ltd .) to file its r ejoin d er , if a n y, with in
a further period of two weeks with copy to the company.

(iii) Th e n ext d a te of h ea r in g on MA No.6 2 1 / 2 0 1 3 filed b y M/ s Ka lp a ta r u

Power Transmission Ltd. is fixed on 20.03.2014.

2.1

In th e h ea r in g h eld tod a y (24.06.2014) in MA No. 621/2013, the

applicant (M/ s Ka lp a ta r u Power Tr a n s m is s ion Ltd .) s ta ted th a t th is MA h a d

b een filed with th e r equ es t to d ir ect S BI(OA) to r etu r n E MD of Rs . 6 .8 0 cr or e
to the applicant. He fu r th er s ta ted th a t in p u r s u a n ce of th e Boa r d s or d er d t.
23.6.2011, for advertisement of change of management (COM), the applicant
had deposited the requisite amount of Rs. 6.80 crore towards EMD in favour
of SBI(OA). He continued that in response to the COM of the sick company,
tota l 9 p a r ties in clu d in g th e a p p lica n t h a d s u b m it ted th eir b id s b efor e th e
stipulated date and out of which, two parties had requested for refund of the
s ecu r ity d ep os it a n d op ted ou t of th e b id p r oces s . He m en tion ed th a t th e
Boa r d in its or d er d t. 2 5 .7 .2 0 1 2 a n d 3 .1 2 .2 0 1 2 a llowed th e two p a r ties to
get th eir E MD r efu n d ed fr om S BI(OA). He r equ es ted to a llow th e a p p lica n t
too to with d r a w th eir b id in lin e with th e oth er two b id d er s with ou t a n y
condition. As th e litiga tion is a lr ea d y ta k in g con s id er a b le tim e, th e a p p lica n t

Case No. 509/1992 : M/S Richardson & Crudas Ltd

is r equ es tin g th e Boa r d th a t th e E MD of Rs . 6 .8 0 cr or e b e p er m itted to b e

withdrawn.
2.2

Th e

r ep r es en ta tive

of S BI(OA) s ta t ed

th a t

th e

a p p lica n t

(M/s

Kalp a ta r u Power Tr a n s m is s ion Ltd .) is con cer n ed a b ou t th e with d r a wa l of

th eir b id s u b m itted in r es p on s e to th e COM of th e com p a n y a lon gwith th e
oth er eigh t p a r ties . He fu r th er s ta ted th a t S BI(OA) h a s n o ob jection if th e
Board permits the applicant to get their EMD back.
2.3

The representative of the company stated that the company has earlier

given NOC to th e t wo b id d er s for with d r a wa l of th eir b id in th is ca s e. Th e

com p a n y h a s n o ob jection if t h e a p p lica n t is p er m it ted to with d r a w th eir b id
a n d to liqu id a te th eir E MD.

He fu r th er s ta ted th a t th e tu r n over of th e

com p a n y is Rs . 2 .0 0 cr or e p .a . In r es p ect of th e r eviva l of th e com p a n y, h e

stated that all the ministries had cleared their revival proposal and the same
is yet to get the nod of Union Cabinet.
2.4

Th e ld con s u lta n t r ep r es en tin g An a n d Aga r wa l & As s ocia tes s ta ted

that his client is the impleaded party made by AAIFR. He further stated that
th e n a m e of h is clien t is s h own a s S l No. 1 7 in th e m a ilin g lis t b u t th e n a m e
is n ot fou n d in th e At ten d a n ce sheet. On a qu er y fr om th e Ben ch , h e s ta ted
th a t a n y a ction fu r th er a n ce of b id s is p u t on h old b y AAIFR. He r a is ed n o
ob jection on with d r a wa l of th e b id b y th e a p p lica n t (M/ s Ka lp a ta r u Power
Transmission Ltd.).
2.5

Ha vin g con s id er ed th e s u b m is s ion m a d e d u r in g th e h ea r in g a n d

m a ter ia l on r ecor d s , th e Ben ch ob s er ved th a t n o on e p r es en t in th e h ea r in g

h a d a n y ob jection on th e with d r a wa l of th e b id b y th e a p p lica n t (M/s
Ka lp a ta r u Power Tr a n s m is s ion Ltd .) a n d liqu id a tion of th e E MD of Rs . 6 .8 0
cr or e. Accor d in gly, th e Ben ch reserved th e or d er in r / o MA No. 6 2 1 / 2 0 1 3
filed b y M/ s Ka lp a t a r u Power Tr a n s m is s ion Ltd . a n d will t a k e a fin a l view in
this regard on the request of the applicant.

(J.P.DUA)
MEMBER

(B.S.MEENA)
CHAIRMAN
4