Justice Jayanta Biswas sent back the matter to BIFR for fresh consideration after allowing a writ petition by a workers' union that challenged the BIFR order, which was also upheld by Appellant Authority for Industrial and Financial Reconstruction (AAIFR).

BIFR had rejected a revival package by a promoter after he failed to prove his bonafide and deposit a certain amount with a bank, following which the jute mill, which employs over 1,500 workers, went into liquidation.

Kanoria Jute Mill Sangrami Sramik Union, a workers' union, went to AAIFR appealing against the order. The appellate body also rejected the appeal holding that revival of the mill was not possible and upheld the BIFR order for liquidation.

The union moved a writ petition before the high court challenging the BIFR and AAIFR orders claiming that the rejuvenation of the mill was possible with a proper revival package.

Indian Bank, the prime lenders of the mill, opposed the plea and prayed for its liquidation. Hearing all the parties, Justice Biswas sent it back to BIFR for reconsideration.