JUDGMENT :

N. NAGARESH, J.

1. Petitioners 1 to 4 are incorporated Companies. Petitioners 1 to 4 along with the 5th petitioner claim to hold 70.81% of equity shares in M/s. Kerala Spinners Limited. Petitioners state that M/s. Kerala Spinners Limited (hereinafter referred to as “the Company” for brevity) is a Private Sector Company promoted by Birlas and was engaged in the manufacture and sale of textile yarn in its factory at Komalapuram in Alappuzha District. Since the year 1998, the Company was incurring losses for various reasons. At this stage, in the year 2001, the petitioners acquired a majority of equities of the Company, with an intention to make the Company viable and profitable.

2. Things did not go in the desired direction and the Company declared lock out on 22.03.2003. The Company applied for closure under Section 25(O) of the Industrial Disputes Act, 1947. The Company had to be referred to the Board for Industrial and Financial Reconstruction (hereinafter called “BIFR” for short). Pending consideration of rehabilitation of the Company, the BIFR appointed Indian Overseas Bank as the Operating Agency invoking Section 17 (1) of the Sick Industrial Companies (Special Provisio