BANK OF BAHRAIN AND KUWAIT B S C Vs. G S L INDIA LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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Pratibha Upasani, -
(1.) THIS miscellaneous appeal is filed by the appellants/original applicants bank of Bahrain & Kuwait B.S.C. being aggrieved by the order dated 25th July, 2003 passed by the learned Presiding Officer of the D.R.T.-II, Mumbai on exhibit Nos. 27 and 31 in Original Application No. 637/2001. By the impugned order, the learned Presiding Officer stayed the further proceedings against the defendant No. 1 until decision of the appeal bearing No. 306 of 2002 pending with AAIFR. being aggrieved, the bank has filed the appeal in this Appellate Forum.
(2.) I have heard Mr. Colabawala for the appellant bank and Mr. K.K. Jain for the respondent No.1. I have also gone through the proceedings and relevant provisions of Sick Industrial Companies (Special Provisions) Act, 1985 and in my view, the learned Presiding Officer's interpretation of Section 22 of SICA, was not correct.
Few facts, which are required to be stated are as follows: Original Application was filed by the applicant bank against the defendant Nos. 1 and 6. During the pendency of the Original Application, the defendants took out application for stay of the proceedings on the ground that the appeal against the order of the BIFR dated 6th July, 2001 had been registered by AAIFR in appeal No. 306 of 2002. It was therefore prayed that in view of Section 22 of the SICA, the proceedings against the defendant No.1 company had to be stayed until decision of the appeal No. 306/2002 pending with AAIFR. It was this prayer, which was allowed by the learned Presiding Officer.
(3.) THE applicant bank had opposed the said application on the ground that the appeal was not. against that portion of the BIFR's order dated 7th June, 2002 which permitted the applicant bank to proceed with the Original Application and that the appeal was directed only against the management portion of the finding recorded by the BIFR.;
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