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Richa Mishra

New Delhi , March 1

THE Board for Industrial and Financial Reconstruction (BIFR) has asked Oman International Bank SAOG (OIB), one of the creditor banks of JCT Electronics Ltd, to prepare a statement of its dues to the company including the interest.

It directed the bank to serve a copy of the statement to the BIFR and the Industrial Finance Corporation of India (IFCI).

The Bench gave these directions while considering OIB's application seeking the Board's permission to file a recovery suit against the company in the debt recovery tribunal.

Further, the Bench asked the company to satisfy itself on the dues statement and confirm its correctness to OIB, the BIFR and the IFCI within a stipulated time frame. At the end of the time period, the Board will pass its orders on the request made by OIB, the order said.

JCT Electronics, belonging to the Thapar group, was set up in technical collaboration with Hitachi Ltd. It is engaged in the manufacture of colour picture tubes. The company has two units — one at Mohali, Punjab, and the other at Vadodara. Due to major labour problems at Mohali in 2001, the operations of the unit came to a halt.

On the revival of operations of the unit, the company said that the workers at Mohali unit are back to work after the settlement of the labour dispute.

In fact, the company is in the process of restarting the unit after the completion of maintenance work. The unit is expected to start production by March. Meanwhile, the Vadodara unit is working.

Seeking permission to initiate recovery suit against the company, OIB submitted, "If permission were not granted to the bank, it would cause severe harm to it."

The outstanding dues of the bank against the company as on July 1, 2002 amounted to Rs 3.54 crore with interest from that date at 23 per cent, which was the penal rate of interest as per the documents executed by the company.

The bank had recalled its loans on July 1, 2002, but immediately, thereafter, the company had filed its reference with the BIFR on July 15, 2002.

At the instant hearing, the company submitted that it wants to settle all the dues of the lenders including those of OIB and other foreign banks on a uniform basis and as such requested that permission may not be granted to OIB under Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, at this stage.

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