The court directed the parties to seek orders from the Board of Industrial and Financial Reconstruction regarding the proposed sale and offering of security, ensuring it does not detriment the scheme of rehabilitation approved by the Board.

( 1 ) THOUGH a number of applications are listed before us, we are concerned here only with an application filed by Shri Ambica Mills for modifying an order passed by us on 15/04/1987. It is submitted that the applicant Shri Ambica Mills desires to sell one of its units in order to discharge its liabilities and rehabilitate itself and that the order of restraint passed by us on 15/04/1987 should be relaxed so as to permit this. It is stated that the applicant is prepared to offer certain other properties to the Oil and Natural Gas Commission by way of security in respect of the amounts due to the Commission. Counsel for the Commission has to verify whether the properties thus offered are sufficient and free from other encumbrances and whether the Commission will be willing to accept these as security in respect of the dues payable under the orders of this court. On the other hand, Shri H. N. Salve, appearing for certain financial institutions states that the properties of the company are mortgaged in favour of several institutions and that, unless full details are available they may not be willing to agree to the company offering a mortgage to the Commission in the terms proposed.

( 2 ) WE find that the affairs of the company and proposals for its rehabilitation are pending before the Board of Industrial and Financial reconstruction which has also passed an order in the matter on 19/03/1991. In our opinion, since the question of reconstruction of the company is already pending before the Board of Industrial and Financial Reconstruction, the best course would be for all the parties now beforeus to appear before the Board. The company may seek the orders of the board as to whether the properties proposed to be offered as security to the Commission can be permitted to be so offered without detriment to other secured creditors. The Board may also examine whether the sale of the unit proposed by the company will benefit the employees and the other creditors of the company. The Oil and Natural Gas Commission and other Financial institutions may also place their representations before the Board. After examination of the representations of the ongc, the financial institutions and the mills, the Board may consider whether the company can be permitted to sell the unit proposed to be sold and also offer security to the ONGC in the terms now proposed, without prejudice or detriment to the scheme of rehabilitation approved by it and give its findings thereon. The present applicants may renew their applications here after the Boards Findings are available. With these observations, the application filed on behalf of Shri Ambica Mills is disposed of.