There have been fresh developments in the case of Indian Cable Company Ltd. (Incab) that has been pending with the Delhi High Court. Based on a petition filed by Tata Steel on the promoters holding an illegal Board Meeting and the appointment of new Directors, the Delhi High Court has passed an order today that the three new Directors cannot function and take any decisions in the matter of Incab Industries Ltd. It has also been directed that no assets of Incab Industries Ltd. shall be disposed in the meantime.

It was noticed that two Board meetings were held on October 23, 2008 and the Board had taken the decision to appoint Mr. Y R Kori, the new director as Chairman of the Board. Three other directors, namely Dato Sadasivan, Dato Bak San and Kon Ted Liuk resigned from the Board of Incab Industries Ltd. in the meeting. With this, all the Directors of the promoter had left the Company and given away charge.

In response to the petition filed by Tata Steel, Mr Y R Kori, the newly appointed Director of Incab Industries Ltd. filed his reply, stating that they had organised the board meeting and taken decisions in the best interest of the Company to revive it. M/s R R Kabel, Kamla Mills and others did not submit any reply to the application of Tata Steel.

As per a communiqué released on October 17, 2008, the State Bank of India (OA) had also objected to the entry of new directors in the Board. The bank had categorically stated to the Company that since the stay order of Delhi High Court is continuing, no assignments or changes in Board of Directors could take place. No such change is acceptable to the operating agency.

Incab Industries Ltd., one time leading manufacturer of industrial cables is lying sick since the year 2000. Lengthy proceedings have been taking place before Board of Industrial and Financial Reconstruction (BIFR). The BIFR and Financial Reconstruction invited bids again in 2006. Pursuant to the advertisement, M/s. RR Kable and M/s Pegasus Asset Reconstruction Company, two bidders had submitted proposals for revival of INCAB.

In view of endless litigation, the workers had lost their patience and filed an affidavit before Delhi High Court pleading that Tata Steel should be directed to submit a revival scheme for the sick company. Upon the request of the workers, Delhi High Court, allowed Tata Steel to submit a proposal for revival of the sick Company. The Delhi High Court heard the final arguments in the case of all concerned parties viz. RR Kable, Kamla Mills, Fasqua Investments, the Workers and Tata Steel. After concluding the arguments on 8.9.2008, the High Court had reserved the case for pronouncing the judgment.