The meeting will now be held again at 10 a.m. on July 7. Heated arguments and noise marked the EGM held at the BRC's office in Fatehnagar. The company had proposed to dispose of assets comprising the POY plant and its auxilliaries/utilities saying negotiations were on with certain parties.

The company expects to receive a little over Rs 20 crore from the sale which would greatly relieve the acute financial stringency it faces, and help it to meet the pressing demands of the financial institutions and creditors, the explanatory statement issued by the BRC under Section 173 of the Companies Act read.

When the meeting began, advocate Rameshchandra Nagarsheth pointed out that the resolution to sell off the POY plant was legally inadequate. ``Little over Rs 20 crore ''was vague, he said, adding that title clearance and conditions of sale deed were also not clear.

Despite having a majority, the board of directors was forced to adjourn the meeting on the legal point.

The shareholders had passed a resolution in the annual general meeting, held in December, allowing the company to dispose of the Rayon Plant. However, the decline in the demand for rayon ensured that the company could not effect the sales by January 31. The Court Receiver was, therefore, appointed from February 1 for mortgaging the company's assets to financial institutions.