The case revolves around the winding-up proceedings of Jhalani Tools India Limited (JTIL). Tata Iron and Steel Company Limited (TISCO) initiated the proceedings due to JTIL's failure to repay a working capital loan. JTIL had also approached the Board for Industrial and Financial Reconstruction (BIFR) for revival. During the BIFR proceedings, a rehabilitation scheme was approved, and financial institutions and a consortium of banks sanctioned term loans and working capital facilities to JTIL. However, the company eventually faced liquidation. The Official Liquidator (OL) was appointed and tasked with disbursing payments to workmen and secured creditors. Dena Bank, a secured creditor and part of the consortium, filed an application contesting the computation of pro rata
…Jhalani Tools India Limited (JTIL) was engaged in manufacturing hand tools with six factories. Tata Iron and Steel Company Limited (TISCO) provided a working capital loan of Rs. 9 crores, which JTIL failed to repay, leading to the initial company petition. JTIL also went before the Board for Industrial and Financial Reconstruction (BIFR) under Case No. 288/1987. A rehabilitation scheme was approved in 1987. Industrial Bank of India (IDBI) and Industrial Investment Bank of India (IIBI) sanctioned term loans. From March 1988, a consortium sanctioned working capital term loans (WCTL) of approximately Rs. 5.74 crores. In 1991, the company extended mortgages created in 1983 in favor of SICOM Ltd., Punjab & Sind Bank, and Bank of America. By 1998, JTIL settled amounts
…Sign in to view the parties.
JTIL went before the Board for Industrial and…
A rehabilitation scheme…
Sign in to view related legal provisions.
The case revolves around the winding-up proceedings of Jhalani Tools India Limited (JTIL). Tata Iron and Steel Company Limited (TISCO) initiated the proceedings due to JTIL's failure to repay a working capital loan. JTIL had also approached the Board for Industrial and Financial Reconstruction (BIFR) for revival. During the BIFR proceedings, a rehabilitation scheme was approved, and financial institutions and a consortium of banks sanctioned term loans and working capital facilities to JTIL. However, the company eventually faced liquidation. The Official Liquidator (OL) was appointed and tasked with disbursing payments to workmen and secured creditors. Dena Bank, a secured creditor and part of the consortium, filed an application contesting the computation of pro rata
…Jhalani Tools India Limited (JTIL) was engaged in manufacturing hand tools with six factories. Tata Iron and Steel Company Limited (TISCO) provided a working capital loan of Rs. 9 crores, which JTIL failed to repay, leading to the initial company petition. JTIL also went before the Board for Industrial and Financial Reconstruction (BIFR) under Case No. 288/1987. A rehabilitation scheme was approved in 1987. Industrial Bank of India (IDBI) and Industrial Investment Bank of India (IIBI) sanctioned term loans. From March 1988, a consortium sanctioned working capital term loans (WCTL) of approximately Rs. 5.74 crores. In 1991, the company extended mortgages created in 1983 in favor of SICOM Ltd., Punjab & Sind Bank, and Bank of America. By 1998, JTIL settled amounts
…JTIL went before the Board for Industrial and…
A rehabilitation scheme…
Sign in to view related legal provisions.