Work at the Board for Industrial and Financial Reconstruction (BIFR),the quasi-judicial authority on sick companies,would come to a halt from Monday with the Finance Ministry revoking its order to extend the tenure of BIFR chairman last week. BIFR,whose proceedings require the presence of the chairman and both members,was set up in 1987 under the Sick Industrial Companies (Special Provisions) Act to determine sickness and expedite the revival of potentially viable units or closure of unviable units. This is the second time the ministry,in particular the Department of Financial Services,has withdrawn its order to extend the tenure of BIFR chairman Nirmal Singh who is eligible to continue for two more years before turning 65,the retirement age for regulatory bodies. After an approval by Cabinet Secretary Ajit Kumar Seth,the department first extended Singhs tenure on September 6 with the stipulation that he would continue until he turned 65. But 10 days later,it withdrew its own order without offering any reason. With four days to go for Singhs term coming to an end,the department issued a second order on October 27 with a clear dateline that Singh would demit office on January 9,2013. But a day later that too was withdrawn. No reason was given this time too but sources said Singhs removal was linked to the infighting in BIFR as he had complained of a member flouting BIFR norms by using brief from others in passing judgement. This issue reached the Department of Legal Affairs which said that a member was not to take inputs even from officers or subordinate staff as it could be viewed contrary to the judicial norms and may not withstand judicial scrutiny. It was expected that by revival,idle investments in sick units will become productive and by closure,the locked up investments in unviable units would get released for productive use elsewhere.
