PUNJAB UNITED FORGE LTD Vs. HINDUSTAN HYDRAULICS P LTD

JUDGEMENT

(1.) THE petitioner-judgment-debtor (hereinafter referred to as "the judgment-debtor") is an industrial company incorporated under the Companies Act, 1956. The decree-holder-respondents (hereinafter referred to as "the decree-holders") filed a civil suit for recovery of a certain amount which was decreed. An appeal against that order was filed on March 29, 1988. The order of the trial court was confirmed by the appellate court. The decree-holders filed an application for execution of the decree passed in their favour.

(2.) PARLIAMENT of India enacted the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "the Act"), with the following objectives (See [1986] 59 Comp Cas (St.) 93) :

(3.) SECTION 22 of the Act deals with suspension of legal proceedings pending against a sick industrial unit in any court and the same is reproduced below :