A.K. SIKRI, J.

Pasupati Fabrics Ltd. (hereinafter called as 'the company') was incorporated as a public limited company in the year 199LBarely within 10 years of its existence, its net worth was fully eroded. It being an industrial company defined under Section 3 (e) of Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'SICA'), it became imperative for it to approach the Board for Industrial and Financial Reconstruction (BIFR) and thus a reference in terms of Section 15 (l)of SICA was filed before the BIFR in March, 2001. It was registered as BIFR Case No. 375/2001. The BIFR declared the company as a sick industrial company under Section 3(1) (0) of SICA. The Industrial Development Bank of India (IDBD, its main creditor, was appointed as the operative agency under Section 17 (3) of SICA for the purposes of preparing a rehabilitation scheme.

The Draft Rehabilitation Scheme (DRS) for the revival of the company was prepared; suggestions/objections Were invited to the same; those suggestions and observations received from the concerned parties were considered by the BIFR and ultimately vide order dated 5th February, 2004 the rehabilitation schem