CALCUTTA, APR 10: Dunlop India Ltd will submit a fresh revival plan to the Board for Industrial & Financial Reconstruction (BIFR) in its bid to get registered under Section 17(2) of the Sick Industrial Companies (Special Provisions) Act of 1985.The company is planning to move the Supreme Court since it feels there is a contradiction between two orders passed by the apex court. While the court stayed the sale of assets on a special leave petition by Dunlop's bankers, in another case it had ordered the company to pay one month's wages to workers at the Ambattur plant in Tamil Nadu by selling assets. Dunlop reported a net loss of Rs 232 crore for the nine months ended December 31, 1997, and sought sick company status under the BIFR. But the BIFR admitted it under Section 17(3) of SICA instead of Section 17(2) as sought by the management, so the company appealed to the AAIFR last year.The AAIFR rejected the appeal, but allowed Dunlop to file a revival plan before April 15 this year under Section 17(2)without taking into account reliefs and concessions from any party unless mutually agreed in advance.Dunlop's spokesperson said the fresh revival scheme will not take into account considerations from anybody. The release said, ``DIL proposes to come out with a revival package u/s 17(2) of SICA and the preparations are in full swing.''According to the spokesperson, two main sources of funds have been proposed in the new revival scheme - sale of properties and promoter's contribution. The revival package will need around Rs 100 crore. The spokesperson clarified that the ``promoter's contribution'' includes funds from Dubai-based chairman Manu Chhabria as well as the financial institutions.At a meeting between the Dunlop management and unions, the Dunlop top brass identified three areas of concern - relationship between the management and the unions, relationship and credibility with the bankers and relationship with the state governments. The spokesperson pointed out that the management conceded thatsome earlier promises made to the bankers had not been fulfilled, but this ``should not come in the way of today's honest objectives of quick revival.''The city-based unions did not participate in Monday's meeting with the management. The spokesperson said the company was told informally that the local parties had directed the unions not to attend the meeting. The Citu-backed Dunlop Worker's Union and All India Dunlop Employees Federation had said earlier that they will not attend any bipartite meeting that excludes the state government. The company spokesperson said that the representatives of other unions had met the management on Monday and had expressed their whole-hearted support. The management was represented by newly inducted executive director YC Lumba, director TS Venkatesan, senior vice-presidents MK Guha (HRD), S Badrinathan (operations) and AVP (personnel) B Sensharma.
