Also, no rehabilitation proposal with means of finance fully tied up had been presented before the board, despite "ample" opportunities being given to all the parties concerned in the case, the latest BIFR order noted. "The bench confirms its prima facie opinion that the sick industrial company Nova Udyog Limited is not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all itsfinancial obligations," the board observed in its recent hearing.

"As a result thereof, the company is not likely to become viable in the future either and hence it is just, equitable and in public interest that it should be wound up under Section 20 (1) of SICA," it added. The bench has further directed operating agency (OA) IDBI to request the district magistrate of Nainital to take possession of property, books of account or any other documents of Nova Udyog Ltd. These articles should be entrusted with IDBI after a comprehensive inventory list has been prepared, the order added.

IDBI would then arrange for security of assets and the expected expenditure to be incurred to be debited from the sick company's accounts. In its submission before the bench, the OA said that neither the promoters nor any other company official had attempted to contact IDBI. "The promoters and management of NUL are guilty of negligence and have acted in a manner contrary to prudent business practices. Each abandoned the projectwithout taking adequate safety measures," the IDBI representative submitted.

"Also, it has been pointed out to the OA that all company records have been burnt and its offices shifted. Thus, IDBI was unable to lay its hands on any evidence," he added. Further, the UP State Electricity Board (UPSEB) representative submitted that NUL owed it Rs 16 crore worth dues on account of litigation.