- (1.) WHETHER any suit is maintainable for recovery of money or enforcement of any security against the Industrial Company while the Company is declared sick and is under rehabilitation? This question arises for consideration in terms of Section 22 of the Sick Industrial Companies (Special Pro-visions) Act, 1985 (for short "sica")in this case.
(2.) THE facts, in brief, are that the petitioner is a limited company which went into losses and had got itself registered with the board of Industrial and Financial Reconstruction, new Delhi (for short "bifr" ). The company was registered with the BIFR in the year 1998. On 30-9-2005, BIFR concluded that the promoters of the Company are not in a position to revive it and that there is no rehabilitation proposal. The company went in appeal against the said order before the Appellate Authority for Industrial and Financial Reconstruction (for short "aaifr" ). The operation of the order passed by the BIFR was stayed on 30-1-2006. On 13-6-2002 respondent No. 1 Electricity board filed a civil suit for recovery of a sum of Rs. 28,14,088/- in the Civil Court at hoshiarpur. The petitioner-company filed an application for dismissal of civil suit before a Civil Judge pleading that the said suit is not maintainable in view of the provisions of Section 22 of SICA. On 24-3-2006 Civil judge (Senior Division), Hoshiarpur dismissed this application filed by the petitioner-company, which is impugned through the present revision petition.
(3.) THE learned counsel for the petitioner has made a single fold submission before me on the basis of contents of Section 22 of sica. As per the counsel, no proceedings for winding up of the industrial company or for execution against any of the properties of the industrial company and no suit for recovery of money etc. shall lie or proceeded with except with the consent of the Board (BIFR) or of the Appellate Authority (AAIFR)as the case may be. It is submitted that respondent No. 1-Board could have filed this suit only after obtaining permission from the board where the company was registered or the Appellate Authority where appeal is pending in terms of Section 22 of SICA.;