Appellate Authority for Industrial & Financial Reconstruction has set aside the BIFR’s order dated August 29, 2013 on Modified Rehabilitation Scheme (MDRS) of Bharat Heavy Plates & Vessels Ltd on technical grounds.
BHPV, the city-based heavy engineering unit, became the 17th unit of BHEL from a wholly owned subsidiary under the name Heavy Plates and Vessels Plant (HPVP) last year.
Directive to BIFR The authority in its recent order stated that the impugned order was passed in a routine manner without application of mind. “As such we are constrained to set aside the impugned order dated August 29, 2013 (which was signed on August 23, 2013) and remand the matter back to the BIFR with a direction to consider the whole matter afresh along with the objections and suggestions submitted by the appellants earlier and pass a reasoned order after due application of mind and, if necessary, after hearing all the parties concerned,” the order pointed out.
The ruling is expected to have far-reaching consequences. The appellate authority stated in its order: “It is, however, made clear that the board will not be influenced by its earlier order while considering the matter afresh.” When contacted, a BHEL official told The Hindu that they were studying the implications of the order. The ruling observed that several provisions of the modified scheme, for example, para 9.2.1 and 9.2.6 are stated to come into force “upon coming into effect of the scheme and with effect from the appointed date.”
It said since the appointed date and the date on which the scheme comes into force are different, how can these provisions come into effect simultaneously from two different dates.
The authority directed the parties concerned to appear before the BIFR on July 28, 2014 for further directions/orders.
