M.H.S.Ansari, J. - (1.) The petitioner is a company. It has been declared sick under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 ('the Act') by the Board for Industrial and Financial Reconstruction (BIFR) on 7-1-1992, Annexure B.
(2.) It is the case of the petitioner that under Section 22 of the Act, there is a bar to initiating any proceedings, inter alia, for execution, distress or the like against any of the properties of the company except with the consent and/or approval of the BIFR. No such consent or approval having been obtained by the respondent-society, the certificate proceedings under Sections 4 and 6 of the Public Demand Recovery Act are bad in law and liable to be quashed and set aside.
(3.) On behalf of the respondent-society, an application was filed for vacating the interim order of injunction passed by N.K. Mitra, J. (as his Lordship then was) dated 9-11-1993. It is the case of the respondent-society that the petitioner-company is owing more than Rs. 2 crores taking into account the interest at the rate of 12 per cent per annum although the interest at the rate of 14 per cent per annum is due on the said outstanding dues to the respondent-society. The amounts due to the society including interest at 12 per cent per annum as on 31-3-1999, are as under : NP.396.htm It is further stated that by two cheques dated 18-9-1999 and 25-11-1999, an aggregate amount of Rs. 15 lakhs was paid and a further sum of Rs. 1 lakh has been paid on 31-12-1999.;