BHORUKA STEEL LTD Vs. FAIRGROWTH FINANCIAL SERVICES LTD

JUDGEMENT

(1.) BY this application the applicants seek stay of further proceedings in Case No. 15 of 1995 and Miscellaneous Application No. 145 of 1995 and Miscellaneous Application No. 6 of 1996.

(2.) MR. Hegde seeks to intervene in this application. He submits that against his client there is a pending petition, being Miscellaneous Petition No. 57 of 1995. He submits that an identical question of law is involved. He submits that on the question of law involved he should also be heard, as otherwise this judgment will affect him. On the question of law Mr. Hegde has been allowed to intervene and argue. The question of law involved is whether the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985, "the Sick Companies Act" prevail over the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 ("the said Act" ). The facts set out hereinafter do not apply to Mr. Hegde's client and are restricted only to this application.

(3.) THE facts briefly stated are that the custodian had demanded from the applicants herein a sum of Rs. 24,79,999 with interest thereon. This was the amount due and payable by the applicants to Fairgrowth Financial Services Ltd. , a notified party. The applicants herein filed Miscellaneous Application No. 111 of 1994 praying for time to pay the amount and for return of certain shares which were pledged with Fairgrowth Financial Services Ltd. By an order dated July, 7 1994, the applicants were permitted to make payment and on payment the shares were to be returned to them.