A two-member BIFR bench, including its chairman PP Chauhan formed prima facie opinion that Haryana Petrochem was not likely to make its net worth exceed the accumulated losses within a reasonable time, while meeting its financial obligations.

"The company as a result was not likely to become viable on a long-term basis and hence it was just, equitable and in public interest that it was wound up," the BIFR said in its notice, objections or suggestions to which would be heard on January 4, 2000.

Haryana Petrochemicals was declared sick by the board in June, 1997 which appointed IFCI as its operating agency to examine the viability of the company and formulate a rehabilitation scheme.

BIFR had earlier also asked IFCI to issue bids for change in the management of the company which also did not meet with any success.

No company, including Reliance Industries which had visited the sick company's plant showed any serious interest in response to the advertisement, Haryana Petrochemicals managing director informed the BIFR bench.

He added that they did not have any revival proposal lined up for the company.

The BIFR bench said if the the existing promoters were able to formulate a viable rehabilitation proposal with means of finance fully tied up they could submit the same to IFCI before November 20, 1999.

The operating agency IFCI will then later hold a joint meeting on the proposal alongwith other creditors of the company and submit its report to the board well before the hearing for objections to the winding up show cause notice, the board said in its not-ice.