A two-member bench of the BIFR comprising chairman PP Chauhan and member G Narayanan asked Dunlop to finalise an MoU with all the unions by February 18, covering payment of unpaid wages including initial payment to enable the factory to restart its operation with labour cooperation.

The bench also criticised the Dunlop management for the "casual manner" in which the company was represented before the board without any duly authorised representative who could make commitment on behalf of the promoters. "This indicated that the company was trying to take undue advantage of beneficial provisions of the Sick Industrial Companies Act, 1985," BIFR said in its order.

The bench asked Dunlop to retain proceeds from sale of Aero Tyres in an escrow account which would be utilised for the rehabilitation of the company. Dunlop would also submit complete and specific details of all its unencumbered assets to the operating agency Industrial Development Bank of India, secured creditors and the unions, the board added.

The board directed Dunlop promoters to show their sincerity towards rehabilitating the company, by restarting the operations and finalising the revival proposal expeditiously. Dunlop promoters, the board said, would bring in funds required to meet the initial payment of workers' wages out of their own contribution. The promoters would not be allowed to dispose of fixed assets for the same, it added. The board rejected Dunlop's application seeking protection in respect of leased premises saying that the company was not entitled for protection under section 22(1) of Sica and the company could not deny payment of rent and lease money to the property holders.