SESA INDUSTRIES LIMITED Vs. MARMAGOA STEEL LIMITED

JUDGEMENT

(1.) THE petitioners have filed an application for winding up Marmagoa Steel Limited (hereinafter referred to as the said company) under the provisions of The Companies Act, 1956. The Executive Director of the said company filed an affidavit on 6th August, 1999 that a reference has been made by the company to the Registrar of the Board for Industrial and Financial Reconstitution, New Delhi (B. I. F. R.) and the said reference has been registered as Case No. 175-99. Accordingly, it was submitted in the said affidavit that provisions of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as the said Act), came into play, as a result of which the present proceedings are required to be suspended.

(2.) SECTION 22 of the said Act, reads as under; 22. Suspension of legal proceedings, contracts, etc.---

(3.) THE petitioners/applicants have now filed an application seeking directions to the said company not to dispose of or alienate or create any third party interest in any of the assets of the company except with the prior leave of B. I. F. R. and that the said company shall give prior adequate notice to the petitioners before applying for such leave of the B. I. F. R.