M. A. NO. 577&580 in CaseNo.

509/1992:
M/ S.RICHARDSON&CRUDAS(1972) LTD.(RCL)

BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

MISC. APPLICATION NO. 577 & 580 IN
CASE NO. 509/ 1992 : M/S. RICHARDSON & CRUDAS (1972) LTD (RCL)
SUMMARY RECORD OF PROCEEDINGS OF THE HEARING HELD ON
16.11.2011 BEFORE THE BENCH CONSISTING OF SHRI NIRMAL
SINGH, CHAIRMAN AND SHRI Y.K.GAIHA, MEMBER.
BENCH-I
Present

Name & Designation of the

Representatives S/Shri/Ms

M/s. Richardson & Crudas (1972) Ltd.

Absent

State Bank of India (OA)

D.J. Shah, AGM

M/s Kalpataru Power Transmissions

Ltd. (Applicant) (MA No.580)

Rajesh Bohra, Advocate

Black Gold Holdings Pvt.Ltd.

(Applicant) (MA No.577)

K.K.R. Das, Consultant

Oberoi Constructions Ltd.

Intervenor/ Impleadment

Rashmi Singh, Advocate

*************
1.1

A s ch em e for r eh a b ilita tion of th e s ick in d u s tr ia l com p a n y, M/ s

Richardson & Cruddas (1972) Ltd. (RCL), was sanctioned by the Board vide
or d er

d a ted

1 4 .1 1 .9 5

u n d er

S ection

1 8 (4 ) r ea d

with

S ection

1 9 (3 )

(h er ein a fter r efer r ed to a s th e Act). Th e s ch em e en vis a ged th e n et wor th of

th e s ick com p a n y b ecom in g p os itive in th e fir s t yea r its elf i.e., b y
3 1 .0 3 .1 9 9 6 , a n d th e a ccu m u la ted los s es wer e to b e fu lly wip ed ou t b y
31.03.2002.
1.2

This scheme however was subsequently found to have failed to revive

th e com p a n y, a n d wa s a ccor d in gly d ecla r ed fa iled b y th e Boa r d vid e ord er

dated 21.1.2002. ICICI was appointed as the Operating Agency u/s 17(3) of
th e Act, a n d wa s d ir ected to is s u e a n a d ver tis em en t for ch a n ge of
management (COM).
1.3

In th e la s t h ea r in g h eld on 2 3 .6 .2 0 1 1 , th e Ben ch is s u ed d ir ection s

for COM of th e com p a n y with th e gu id elin es a n d fixed th e n ext h ea r in g on

5.10.2011, which was however, postponed.
1

M. A. NO. 577&580 in CaseNo. 509/1992:

M/ S.RICHARDSON&CRUDAS(1972) LTD.(RCL)

1.4

M/s Bla ck Gold Hold in gs Pvt.Ltd . (Ap p lica n t) filed MA No. 5 7 7

r equ es tin g th e Boa r d to is s u e n eces s a r y d ir ection s to S BI(OA) a n d th e s ick

com p a n y to p r ovid e th e a p p lica n t h er ein with th e d eta iled lis t of p la n t &
m a ch in er y with its m a k e a n d yea r of m a n u fa ctu r e a s a ls o cop ies of a ll title
d ocu m en ts s o th a t in s p ection of a ll th e fou r u n it s a n d a ls o d u e d iligen ce
ca n b e ca r r ied ou t b efor e s u b m it tin g a via b le a n d a ccep ta b le Dr a ft
Reh a b ilita tion Pr op os a l (DRP). Th e a p p lica n t a ls o r equ es ted th a t th e S BI
m a y b e d ir ected to give th em 3 0 d a ys tim e for s u b m ittin g th e DRP fr om th e
date of handing over all the requisite details/ information.

1.5

M/s Ka lp a ta r u Power Tr a n s m is s ion Ltd . (Ap p lica n t) filed MA No. 5 8 0

requesting the Board to direct the SBI(OA) to issue letters to all the bidders
of th e s ick com p a n y (RCL) t o s u b m it th eir b id s a n d Dr a ft Reh a b ilita tion
Pr op os a ls (DRP) in s ea led en velop e to th e OA with in a s tip u la ted tim e a n d
cop y th er eof to th is Hon b le Boa r d .

2.1

In th e h ea r in g h eld tod a y (1 6 .1 1 .2 0 1 1 ), th e Ben ch n oted th a t n on e

wa s p r es en t fr om t h e com p a n y. Th e ld Con s u lt a n t a p p ea r in g on b eh a lf of
M/ s Bla ck Gold Hold in gs Pvt . Ltd . (Ap p lica n t of MA No. 5 7 7 ) r eiter a ted th e
r equ es t m a d e in th e MA a n d s u b m it ted th a t th ey h a d s u b m itted th eir
p r op os a l a n d s in ce th e vita l d eta ils wer e m is s in g in th e a d ver tis em en t for
COM, th ey m a y b e a llowed to r es u b m it th e d eta iled p r op os a l a fter
obtain in g th os e d eta ils . On a qu er y fr om th e Ben ch , h e s u b m it ted th a t th e
MA No.-577 had been served on the company.

2.2

The ld a d voca te a p p ea r in g on b eh a lf of M/ s Ka lp a ta r u Power

Tr a n s m is s ion Ltd . (Ap p lica n t of MA No. 5 8 0 ) s u b m it ted th a t th ey h a d

s er ved th e MA No. 5 8 0 on th e com p a n y. He fu r th er s u b m itt ed th a t th e MA
No. 5 7 7 filed b y M/ s Bla ck Gold Hold in gs Pvt. Ltd . is in fr u ctu ou s a s the
S BI(OA) h a d is s u ed a n a d ver tis em en t for COM of th e com p a n y. All th e
b id d er s h a ve s u b m itted th eir b id s in tim e with ou t a n y ob jection s excep t
M/ s Bla ck Gold Hold in gs Pvt . Ltd . wh o h a s s ou gh t exten s ion of tim e. Now
th a t th ey h a ve a lr ea d y s u b m it ted th e p r op os a l a s h a s b een s u b m itted b y
oth er b id d er s , th eir MA b ecom es in fr u ctou s . To wh ich , th e ld Con s u lta n t
2

M. A. NO. 577&580 in CaseNo. 509/1992:

M/ S.RICHARDSON&CRUDAS(1972) LTD.(RCL)

a p p ea r in g on b eh a lf of M/s Bla ck Gold Hold in gs Pvt. Ltd . s u b m it ted th a t

u n les s th e d eta ils of p la n t a n d m a ch in er y a r e a va ila b le h ow ca n a
prospective bidder submit a detailed bid.

2.3

The ld a d voca te a p p ea r in g on b eh a lf of M/ s Ob er oi Con s tr u ction s

Ltd . s u b m it ted th a t th ey a r e on e of th e b id d er s a n d th ey h a ve cer ta in

s u b m is s ion s . Th e Ben ch ob s er ved th a t th ey h a ve n ot b een im p lea d ed in
the case and directed them to file first an impleadment application.

2.4

The Bench en qu ir ed fr om S BI(OA) wh eth er th e con ten ts of th e

advertisement wer e in lin e with th e Gu id elin es for Ch a n ge of Ma n a gem en t

dated 12.10.2010 issued by the Board and the model provided therein. The
r ep r es en ta tive of S BI(OA) s u b m it ted th a t th e b r oa d p a r a m eter s wer e
p r ovid ed in th e a d ver tis em en t. He fu r th er s u b m itted th a t th e OA h a d
for wa r d ed th e p r op os a l of on e of th e b id d er M/ s Fa r ia s Hotels Pvt. Ltd . to
th e Boa r d a s th ey h a d told th e OA to d o s o. Ben ch ob s er ved th a t a s p er
gu id elin es th er e is n o s u ch r equ ir em en t a n d d ir ected h im to collect th e
same from the Bench office for further action.

2.5

Ha vin g con s id er ed th e s u b m is s ion m a d e a n d th e m a ter ia l on r ecor d ,

the Bench issued the following directions :(i)

S BI(OA) to file wr it ten s u b m is s ion wh eth er th e OA h a d s tr ictly

followed th e Gu id elin es for Ch a n ge of Ma n a gem en t d a ted 12.10.2010
is s u ed b y th e Boa r d a n d th e m od el p r ovid ed th er ein with in a p er iod
of 1 week.

(ii)

Ben ch Officer to s er ve a n otice to th e MD/ Rich a r d s on & Cr u d a s

(1972) Ltd. to attend the next hearing of MA Nos. 577 & 580.

(iii) The n ext d a te of h ea r in g to h ea r th e MA Nos . 5 7 7 & 5 8 0 will b e

30.11.2011.

(Y.K.GAIHA)
MEMBER

(NIRMAL SINGH)
CHAIRMAN