9911796707
TMI Blog2001 (7) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... ed memo of parties has been filed on record. Let the same be taken on record. 3. Application stands disposed of. 4. This is an application under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), read with section 151 of the Code by the defendant-tenant. It has been contended by Mr. Sandeep Aggarwal that the suit filed by the plaintiff is for recovery of possession and recovery of mesne profits and damages. It has been contended by the learned counsel for the applicant-defendant that defendant company has made a reference under section 15(1) of SICA to the Board for Industrial and Financial Reconstruction on 27-2-2001 to declare the defendant-company as sick industrial company and the said reference has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the tenancy of the defendant was terminated vide a notice dated 17-4-1997 with effect from 31-5-1997. He has further contended that written statement was filed by the defendant on 19-1-1999 and in the written statement plea was taken by the defendant that the tenancy of the defendant was extended till the year 2000. Mr. Chandhiok has argued that even if the averment in the written statement is taken to be true, even then there is no right with the defendant to hold the possession of the property in question beyond year 2000. He has further contended that recovery of arrears of rent is not what is contemplated under section 22 of SICA. The learned counsel for the plaintiff has relied upon Shree Chamundi Mopeds Ltd. v. Church of South I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). We are unable to agree. The second category contemplates proceedings for execution, distress or the like against any other properties of the industrial company. The words 'or the like' have to be construed with reference to the preceding words, namely, 'for execution, distress' which means that the proceedings which are contemplated in this category are proceedings whereby recovery of dues is sought to be made by way of execution, distress or similar proceedings against the property of the company. Proceedings for eviction instituted by a landlord against a tenant who happens to be a sick industrial company, cannot in our opinion be regarded as falling in this category. We may, in this context, point out that, as indicated in the Preambl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the landlord of such a company must continue to suffer a loss by permitting the tenant (sick industrial company) to occupy the premises even though it is not in a position to pay the rent. Such an intention cannot be imputed to Parliament. We are, therefore, of the view that section 22(1) does not cover a proceeding instituted by a landlord of a sick industrial company for the eviction of the company premises let out to it." (p. 1445) 8. Therefore, I do not find any force in the arguments of the learned counsel for the applicant-defendant that the proceedings in the suit be stayed. 9. Now coming to the second part of the prayer of the plaintiff in which plaintiff is claiming the arrears of rent as well as future rent in the shape o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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