The bench, in a hearing recently, noted that there was no rehabilitation proposal with means of finance fully tied up for MAPL, manufacturer of general antibiotics, in spite of sufficient opportunity given to all parties concerned. As a result, the bench said the company, with 250 workers, was not likely to become viable on a long-term basis and hence, it was just, equitable and in public interest that the unit wound up.

Earlier in February 1998, the board had formulated a Rs 7.68 crore revival scheme proposed to be financed by way of unsecured loans of Rs 4.72 crore from government of India through Hindustan Antibiotics Limited and Rs 2.96 crore from bankfinance. It was envisaged that the company's net worth would become positive during 2002-03 but its accumulated losses would not get wiped out during the rehabilitation period. However, HAL or the ministry of chemicals and fertilisers were not forthcoming in committing the funds.

Also, SICOM was not agreeable for conversion of loan of Rs 10 lakh into equity, as envisaged in the scheme. Further, it submitted against extending any more exposure to MAPL as it had already given a Rs two crore loan.

Company MD H D Tenpe sought at least a fortnight more for the government to convey their final views on induction of fresh funds and conversion of loans into equity. The company has the potential of revival as it incurred a loss of Rs 96 lakh in 1997-98 and Rs 73 lakh during the last fiscal.

Tenpe said the company can be revived, provided induction of fresh funds and conversion of loan into equity by the government were taken up simultaneously.