JAY ENGINEERING WORKS LTD Vs. INDUSTRY FACILITATION COUNCIL

JUDGEMENT

(1.) PRESENT is a intra Court appeal under Clause X of the Letters Patent against the impugned order of the Single Judge in W. P. No. 1156/2003 dismissing the same.

(2.) FACTS necessary for decision of this appeal are as follows:

(3.) AS per appellant it being a sick unit in whose favour rehabilitation scheme has been sanctioned and was being enforced the Council could not have entertained or awarded for recovery or enforcement of any liability due to R2 except with the consent of the BIFR. It was claimed that R2 could not have referred the dispute to the Council as there has been no arbitration clause in the agreement. Under the agreement all disputes had been subject to the jurisdiction of the Agra Courts only. Council (R1) stationed at Bhopal had no jurisdiction to decide. The appellant on receipt of notice from the Council (R1) had informed the Council vide its letter dated 7. 7. 2002 that it had not received the copy of suit along with notice and that it had been registered as sick company by BIFR and, thus, the proceedings should not be proceeded further. Despite such information passage of the award by the Council had been improper and without jurisdiction. It was also claimed that the appellant being a sick unit had not the financial capacity of depositing 75% of the awarded money and, thus, remedy of statutory appeal had been elusory. Moreover, no appellate authority had been in existence. It had been claimed that provisions of Section 10 of the Act of 1993 had not been inconsistent with the provisions of Section 22 of the SICA and effect could have been given to both of them and, thus, only a harmonious construction could be put to the clause providing overriding effect to the Act of 1993.