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Appellate Authority stays BIFR order on Metal Box
November, 21st 2006

The Appellate Authority for Industrial & Financial Reconstruction (AAIFR) has stayed until further orders all proceedings in BIFR case (No. 34/88) relating to Metal Box India Ltd.

The BIFR, in an order issued in September, had directed the MBIL management to fulfil the promises it had made earlier in the BIFR package and these included, among other things, the payment of outstanding dues to workers and employees, including statutory and other dues, submission of action plan for commencement of operations in closed units as per the BIFR package, submission of detailed list of assets already sold by the company, holding of meetings with banks and financial institutions and others like sales tax authority, excise department and Kolkata Port Trust for arriving at a settlement of the company's outstanding with them and submission of a status report on whether the promoter's contribution of Rs 30 crore, as promised in the BIFR package, had been made and if not what would be the time frame for infusion of funds.

BIFR had indicated that it might even consider the change of management of the company if it continued to violate the provisions of the final rehabilitation package issued as early as 2001.

As the situation stands now, the BIFR order cannot be enforced following the AAIFR order. The AAIFR is to hear the case again on December 12, it is learnt.

 
 
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