The Delhi high court, based on an appeal by Tata Steel, on Friday ordered that the three new directors recently appointed by Leader Universal, Incab Industries’ Malaysia-based promoter, cannot take any decision in the matter of the closed cable major located at Pune.
“It has also been directed that no assets of Incab Industries shall be disposed of in the meantime,” Rakeshwar Pandey, president of Incab Industries Employees Association (IIEA), told FE from Delhi.
Two board meetings were allegedly held on October 23, 2008, and the Incab Industries’ board had taken the decision to appoint YR Kori, the new director, as the chairman of the board.
Three other directors, Dato Sadasivan, Dato Bak San and Kon Ted Liuk resigned from the board at the meeting. With this, all the directors of the promoter have left the company.
In response to the recent petition filed by Tata Steel, Kori stated that the board meeting had been organised and decisions had been taken keeping in mind the best interests of the company to revive it.
RR Kabel, Kamla Mills and others, who have been vying to become Incab’s new promoter, however, did not submit any reply to the application of Tata Steel.
As per a communiqu? released on October 17, 2008, Incab’s operating agent SBI had also objected to the entry of new directors in the board.
The bank had categorically stated to the company that since the stay order of Delhi high court was continuing, no assignments or changes in the board of directors is acceptable.
Incab Industries Ltd, once a leading manufacturer of industrial cables, is lying sick since 2000. Lengthy proceedings have been taking place before the Board for Industrial & Financial Reconstruction (BIFR).
The BIFR had invited bids for the company’s revival in 2006. RR Kable and Pegasus Asset Reconstruction Co were the two bidders who had submitted proposals.
In view of prolonged litigation, a section of Incab workers had lost their patience and filed an affidavit before the Delhi High Court pleading that Tata Steel be directed to submit a revival scheme for the sick company. Following that, the HC allowed the steel major to submit a proposal to revive the sick company.
The high court heard the final arguments on September 8, 2008.