Financial Daily from THE HINDU group of publications
Thursday, Dec 16, 2004
Financial Daily from THE HINDU group of publications Thursday, Dec 16, 2004 |
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Corporate
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Sick Units Bestavision fails to get shelter under BIFR Richa Mishra
New Delhi , Dec. 15 BESTAVISION Electronics Ltd's attempts to seek shelter under the Board for Industrial and Financial Reconstruction seem to have met with little success. Noting that the consortium of banks had taken steps under the Securitisation Act, the Bench stated that the proceedings before the Board stood abated. At the recent hearing, the representative of Punjab National Bank (PNB) submitted that it was leader of a consortium of banks - PNB, Oriental Bank of Commerce, State Bank of Bikaner & Jaipur and India Overseas Bank - that had more than three fourth in value of the dues outstanding against financial assistance disbursed to the company. PNB further added that at a meeting of the consortium of banks in August it was agreed that being the lead bank, PNB would take steps for initiating action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The PNB representative stated to the board that the formalities for taking over possession of the secured assets of the company by the consortium banks under the Securitisation Act consequent upon failure of the company to discharge its liability had been completed and prayed to that the proceedings before it may be abated. Further, it was submitted that all consortium bank members had authorised in writing the lead bank - PNB to take recourse under the Securitisation Act. The BIFR Bench was also informed that the Possession Notice was issued and possession of the property was taken by the Bank in exercise of powers conferred under Securitisation Act on September 18. The representative of the company, the Bench noted, also confirmed this. The company representative submitted that it had filed an appeal in the Debt Recovery Tribunal (DRT). The Bench, however, noted that the promoter of the company had not attended the hearing to explain the position himself and expressed concern over his absence at the hearing. The earlier reference of the company was dismissed as non-maintainable in November 2000 on account of manipulation of accounts and unclean hands of promoters. The company had made an appeal to the Appellate Authority, which was also dismissed in August 2001. Bestavision, based on the audited balance sheet as on March 31, 2001, had filed this reference. At the hearing held on November 14, 2003, the Bench had reserved its orders on the sickness of the company while giving certain directions.
More Stories on : Sick Units | Electronics | Non-Performing Assets
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