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Issues involved: Suit not proceeding due to defendant being a sick company under SICA, requirement of prior permission u/s 22 of SICA for continuing with the suit.
Issue 1: Requirement of prior permission under Section 22 of SICA The judgment refers to a Division Bench judgment of the Supreme Court in the case of Raheja Universal Limited Vs. NRC Limited and Ors. (2012) 4 SCC 148, which clarifies that proceedings requiring prior permission under Section 22 of SICA are those in the nature of execution, distress, or similar actions that may lead to the liquidation of assets of a sick company. Not every suit for recovery automatically falls under this provision, only those suits that may result in the liquidation of assets are affected by Section 22 of SICA. Issue 2: Suit for recovery of money not requiring prior permission In the present case, the suit is for the recovery of money without any threat to the liquidation of the assets of the sick company. The plaintiff's counsel does not press for interim applications under the Code of Civil Procedure. Therefore, as there is no risk to the company's assets, no prior permission is needed under Section 22 of SICA. Consequently, the suit can proceed without the permission of BIFR/AAIFR. Conclusion The judgment allows the suit to proceed without the need for prior permission under Section 22 of SICA, as it is a simple suit for the recovery of money without posing a threat to the assets of the sick company. The defendant is directed to file the written statement within six weeks, and further procedural steps are outlined for the progression of the case. The matter is scheduled for the framing of issues in January 2013, marking of exhibits, and other necessary steps to move the case forward.
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