- (1.) The question involved in the present revision petition is as to "whether the suit for recovery of arrears of rent would also mean the suit for recovery of money and is barred, if filed, without the prior permission of the Board of Industrial and Financial Reconstruction, in terms of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985?"
(2.) This petition is directed against the order dated 4.12.2002, passed by Civil Judge (Jr. Division), Chandigarh, dismissing the objection filed by the respondents against the execution of the decree. The brief facts are that the respondents filed an eviction petition against the petitioner on the ground of non-payment of arrears of rent. The eviction was ordered on that account and possession has already been delivered. The respondents then filed the suit for recovery of arrears of rent in which the petitioner was proceeded against ex parte and a decree dated 12.4.2001 was passed. The respondents filed the execution application to recover the amount determined under the decree but it was contested by the petitioner by filing objections on the ground that in view of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 [for short 'the Act'], suit for recovery of the arrears of rent could not have been filed by the respondents without seeking prior permission of the Board of Industrial and Financial Reconstruction [for short 'the BIFR']. On the pleadings of the parties, as many as five issues were framed by the Executing Court on 30.10.2001, which read as under:- "1. Whether the judgment and decree dated 12.4.2001 is nullity in the eyes of law as per the objections of the JD? OPD 2. Whether the ex parte decree is liable to be set aside being without jurisdiction? OPJD 3. Whether the JD-firm was declared sick unit under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, if so, its effect? OPJD 4. Whether the objection petition is not maintainable? OPDH. 5. Relief."
(3.) Issues No.1 to 3 were taken up together and decided against the objector, holding that Section 22 of the Act prohibits recovery of money and not the rent. Learned counsel for the petitioner has submitted that the words "no suit for recovery of money to the industrial company" were added in the Section by way of an amendment in the year 1994 by Act No.XII of 1994 by virtue of Section 12 of that Act". Section 22 after amendment is reproduced as under: - "22. Suspension of legal proceedings, contracts, etc- (1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relating to an industrial company is pending, then, notwithstanding, anything contained in the Companies Act, 1956, or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said Act or other law, no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof [and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company] shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority. (2) Where the management of the sick industrial company is taken over or changed [in pursuance of any scheme sanctioned under section 18] notwithstanding anything contained in the Companies Act, 1956, or any other law or in the memorandum and articles of association of such company or any instrument having effect under the said Act or other lawa) it shall not be lawful for the shareholders of such company or any other person to nominate or appoint any person to be a director of the company; b) no resolution passed at any meeting of the shareholders of such company shall be given effect to unless approved by the Board. (3) [where an inquiry under section 16 is pending or any scheme referred to in Section 17 is under preparation or during the period] of consideration of any scheme under section 18 or where any such scheme is sanctioned thereunder, for due implementation of the scheme, the Board may by order declare with respect to the sick industrial company concerned that the operation of all or any of the contracts, assurance of property, agreements, settlements, awards, standing orders or other instruments in force, to which such sick industrial company is a party or which may be applicable to such sick industrial company immediately before the date of such order, shall remain suspended or that all or any of the rights, privileges, obligations and liabilities accruing or arising thereunder before the said date, shall remain suspended or shall be enforceable with such adoptions and in such manner as may be specified by the Board";