ABCL, promoted by Amitabh Bachchan, had earlier moved BIFR for being declared as a sick company on the ground that its net worth of Rs 60.52 crore was totally eroded in view of accumulated losses amounting to Rs 68.51 crore.

The bank, which had advanced to ABCL Rs 10 crore, would file an appeal within a month before AAIFR under section 25 of Sick Industrial Companies (Special Provisions) Act, 1985, its counsel Nishit Dhruve, said here on Sunday. Canara Bank would simultaneously urge Mumbai high court for attachment of palatial bungalow of the mega star located in Juhu whose cost is estimated at Rs 10 crore.

The bank had already filed a suit in the high court for recovery of its loan. Canara Bank counsel said the bungalowstood in the name of Amitabh Bachchan and his wife Jaya who were the guarantors of the loan. Hence the bank will proceed against the couple individually because it could not move against ABCL in view of the impugned BIFR order.

Section 22 of Sica Act barred a creditor from proceeding against a company which had been declared sick, but allowed action against individuals who stood as guarantors, Canara Bank counsel Nishit Dhruve said. Besides, he said, a high court order delivered by Justice VP Tipnis had laid down that a creditor could seek attachment of immovable assets owned by individuals who stood as guarantors for loans procured by companies which eventually fell in the sick category.

The bank would also urge BIFR to allow attachment of two spacious flats owned in Mumbai by ABCL. Under the requisite laws, the bank could not proceed against ABCL for attachment of its properties unless permission of BIFR was sought. It had already applied for such permission and BIFR ruled on Saturday that it shouldfile an application within ten days after serving notice to the other side following which it would pass an order, its counsel said. The bank, in its objections to ABCL's case before BIFR, submitted that ABCL had not given any details in its balance sheet about the unsold stock of audios valued at Rs 1.93 crore and the stock of feature film.