Incab Majority Stakeholder Arya Files Suit Against Bifr

Satya Prakash Arya, majority shareholder of Incab Industries, has filed a suit against the Board for Industrial and Financial Reconstruction (BIFR) before the Calcutta High Court.

In his petition Arya says that P P Chauhan, the chairman of BIFR, deliberately acted in such a manner which would make it impossible for him to run Incab Industries, of which he was the majority shareholder, or revive the unit, while in the same time the chairman went on alleging that Arya was unfit to revive the company.

Justice Bhaskar Bhattacharyya directed Arya to serve notice to all the parties including the foreign companies before hearing the suit.

Arya has represented himself as chairman-cum-managing director of Incab in the suit. He alleged that "the BIFR chairman and others acting in collusion with each other tried to oust Arya from the management of the ailing cable company".

Arya sought the court's order staying the operation of the resolution dated August 1, 2001, by which a fresh interim management committee has been appointed to look after the day-to-day affairs of Incab.

In the suit, Arya stated that after acquiring controlling stake of Incab, "He discovered that the former management had fraudulently represented to the BIFR that Incab was a sick industrial company and required rehabilitation".

It was alleged that "deliberately manipulating the records of the company and concocting spurious and misleading documents and accounts as such that Incab which was showing a gross annual turnover of Rs 120 crore was made to appear to be running at a loss".

It was also alleged that "the company will be forcibly declared a sick company so that another industrialist --Bijay Mundhra -- would be able to acquire the company under the guise of its revival for a song".

Arya prayed for the court order to the effect that only those persons who were appointed by him as the directors of Incab will be allowed to continue, act and function as directors of the company till the disposal of the suit, if necessary with police help.