S. B. Sinha, J. - (1.) Leave granted.
(2.) This appeal is directed against a judgment and order dated 29.1.2008 passed by the High Court of Karnataka at Bangalore in RFA No. 982 of 2007 whereby and whereunder judgment and decree dated 21.12.2006 passed by the Civil Judge, Senior Division, decreeing the suit being OS No. 728 of 2002 filed by the respondent was affirmed.
(3.) A partnership firm known as M/s. Kashmiri Rice Industries has its place of business at Hangal. The said firm entered into a contract for Suppl ly of paddy husk with the appellant. Inter alia, on the premise that appellant herein, despite Suppl ly of the agreed quantity of paddy husk, failed and/or neglected to pay the price therefor, the respondent filed a suit for recovery of a sum of Rs. 2,61,696/- in the Court of Civil Judge, Hangal. One of the contentions raised by the appellant in the said suit was that as the appellant-company has become a sick industry within the meaning of the provisions of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, the Act) and a reference having been made to the Board of Industrial and Financial Reconstruction (BIFR) in terms of the provisions of the Act, the suit was not maintainable. The learned Trial Judge, inter alia, framed the following issue : "Do defendants prove that suit is also hit by Section 22 of Industrial Companies (Special Provisions) Act as contended in Para 7 of W.S. Preliminary issue - From a perusal of the judgment, it appears that no argument was advanced before the learned Trial Judge on the said issue. However, it was opined that Section 22 of the Act provides for suspension of the proceedings and in view of the fact that no final order has been passed by the BIFR declaring the appellant as a sick industry, mere reference would not suffice. A finding of fact furthermore was arrived at that the transaction in question being subsequent to the reference, Section 22 of the Act would have no application.;