9911796707
TMI Blog2001 (2) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... ill pending with the BIFR. 2. The learned counsel for the respondent has placed reliance upon Lloyd Insulations ( India ) Ltd. v. Cement Corpn. of India [1997] 89 Comp. Cas. 483 (Delhi) wherein it was observed that section 22(1) contemplates that any proceedings for the recovery of money against the sick company have to be stayed if an application under section 21 of the SICA is moved. However, the facts of the referred case are distinguishable. In the said case the Arbitrator had passed the award which was registered as a suit in favour of Lloyd Insulations (India) Ltd. and against the Cement Corporation of India. The Cement Corporation of India filed objections against the award. In the intervening period the Cement Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y shall lie or be proceeded with further, except with the consent of the Board or, as the' case may be, the appellant authority." Another relevant provision is sub-section (3) of section 22 which is as under : "(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, assurances of property, agreements, settlements, awards, standing orders or other instruments in force, to which such sick industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by section 22 of the SICA and that it is open to the respondent to take appropriate legal steps under the provisions of the 1996 Act, under the law if they wish proceedings to be discontinued. 5. Merely because the Arbitrator was appointed by both the parties under the provision of section 11 would not make any difference in view of the ratio in Agio Countertrade ( P. ) Ltd.'s case ( supra ) that proceedings under section 11 of the 1996 Act, can continue even if the respondent-company has been declared sick under the provision of section 22 of the SICA. In the result, the application of the respondent for discontinuance of the instant proceedings cannot be allowed and is hereby dismissed. - - TaxTMI - TMITax - Corporate La ..... X X X X Extracts X X X X X X X X Extracts X X X X
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