( 1 ) THE short question to be determined in this petition is about the legality of the condition impeded by Board for Industrial and Financial Reconstruction (BIFR) directing promoters of petitioner Company to deposit a sum of Rs. 40 lakhs in a No Lien Account and further directing that in case such a deposit is not made, the Operating Agency would advertise for change of management inviting offers for the take over of the Sick Industrial Company.

( 2 ) PETITIONER No. 1 Company made reference undersection 15 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as the Act ). The paid up capital of the Company as on 31st March, 1996 was Rs. 25 lakhs and the accumulated losses on that date were Rs. 342. 76 lakhs. The principal financial institution claiming huge amounts from the petitioner Company is Punjab National Bank. According to the Bank the Company s accounts have been irregular since July, 1992. A meeting was held with the Company in February, 1993 when it was decided that the Company would spend Rs. 6 lacs and get a techno economic viability study done. The Company subsequently expressed their inability to incur t