In the appeal filed under Section 25 of Sick Industrial Companies (Provisions) Act, 1985, the Canara Bank has sought quashing of BIFR order and directions for appointment of special auditors to probe ABCL's accounts for last three years, its counsel Nishit Dhruve said.

Canara Bank, in consortium with Allahabad Bank, had given a credit of about Rs 14 crore to ABCL, promoted by mega star Amitabh Bachchan, which included its share of Rs 10 crore.

The bank contended that BIFR in its July 9 order had ignored the objections raised by it and declared ABCL a sick company. BIFR had merely accepted ABCL's submissions without any documentary proof in support thereof, the bank said adding the order hadprovided an effective shield to ABCL under Section 25 of the Act putting creditors in a disadvantageous position.

The bank further said that BIFR had also failed to seek ABCL's explanation on allegations regarding irregularities in its balance sheet and depletion of stocks.

Canara Bank pleaded that ABCL could not be defined as an `industry' as it failed to produce the certificate showing the presence of any manufacturing capacity of five lakh units as required under law.

ABCL had stated that its main business activity was manufacturing and assembling of audio cassettes while the subsidiary business was of motion pictures production, distribution and related services besides TV serials and software, the bank said.