IN THE SUPREME COURT OF INDIA

CIVIL  APPELLATE JURISDICTION

CIVIL  APPEAL  NO. 3088  OF 2008

[Arising out of SLP(C) No. 5583/2007]

MODI INDUSTRIES LTD. ... APPELLANT(S)

:VERSUS:

STATE OF U.P. AND ORS. ... RESPONDENT(S)

O R D E R

Leave granted.

The matter stood adjourned from time to time awaiting the decision of the

BIFR.  The BIFR has since passed an order on 26.3.2008 the material portion whereof

reads as under:

“17. Having considered the facts on record, the Bench observed that

in  the  hearing  held  on  12.3.2007,  the  Bench  had  directed  the

promoters of the company to submit fully tied up proposals jointly or

severally,  to  IDBI (OA) within  three  months,  in  terms of  Hon'ble

AAIFR order dated 24.5.2006. IDBI (OA) was directed to submit a

fully tied up DRS to the Board within two months thereafter.  The

cut-off  date  for  the  scheme  was  to  be  taken  as  30.6.2007.

Notwithstanding  the  interim  orders  of  status  quo  of  the  Hon'ble

AAIFR,  the  final  cut-off-date  given by the  Board  continued  to  be

30.6.2007.

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17.1  As per the standard guidelines of the Board for preparation of

rehabilitation scheme, the company was required to be regular in the

payment all its current dues arising after the cut-off-date, since the

recovery of such dues was not covered in the proposed rehabilitation

scheme.

17.2 The Bench observed from the company's audited balance sheet

for 2006-07 that the company was working and paying the current

statutory dues also.

17.3  Therefore, the Bench permits the Commercial Tax Department,

Government of Uttar Pradesh to recover its outstanding dues,  due

after 30.6.2007, i.e. the cut-off-date given by the Board vide its final

order  dated  12.3.2007  regarding  preparation  of  the  rehabilitation

scheme.”   

In view of the subsequent events, we are of the opinion that subject to the

parties  seeking  appropriate  remedies  thereagainst,  interest  of  justice  would  be

subserved if  the  order  of  the  High  Court  is  set  aside  at  this  stage  and we direct

accordingly.   

We may observe that we have not gone into the merit of the matter and it

would be open to the parties to take recourse to such remedies as may be available to

them in law.     

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The appeal is disposed of with the aforementioned observation and direction.

..........................J

(S.B. SINHA)

..........................J   (LOKESHWAR SINGH PANTA)    NEW DELHI, APRIL 28, 2008.