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TMI Blog1999 (8) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... contract. 3. A statutory notice in terms of section 434 of the Companies Act, 1956, was served but the same had not been replied to. It is also admitted that the company has filed an application in terms of the second proviso appended to section 15 of the Act before the Board for Industrial and Financial Reconstruction ( the BIFR ) wherein a rehabilitation scheme had been sanctioned. Admittedly, the claim of the writ petitioner had not been included in the scheme as the same arose after sanction thereof but during its implementation. 4. The contention of Mr. S.N. Mukherjee, the learned counsel appearing on behalf of the appellant, is that keeping in view the provisions of section 22 any claim made after the order sanctioned in the scheme passed by the BIFR would not attract the provision of sub-section (3) of section 22 and in support of the said contention reliance has been placed on Dy. CTO v. Corromandal Pharmaceuticals [1997] 89 Comp. Cas. 1 1 , Sirmor Sudburg Auto Ltd. v. Kuldip Singh Lamba [1998] 91 Comp. Cas. 727 (Delhi), Pranami Press v. Vinedale Distilleries Ltd. [1998] 94 Comp. Cas. 926 2 (AP) and Vibgyar Ink Chem (P.) Ltd. v. Safe Pack Polymers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme providing for such measures in relation to such company." When an order is made under sub-section (3) of section 17 in relation to any sick industrial company, the operating agency specified in the order is required to prepare a scheme as expeditiously as possible and ordinarily within a period of ninety days of such order. The measures which were to be considered for making a scheme are stated in clauses ( a ) to ( f ) of sub-section (1) of section 18. 9. The scheme referred to in sub-section (1) may also provide for any one or more of the matters referred to in sub-section (2) thereof. 10. Sub-sections (8) and (9) of section 18 read thus : "(8) On and from the date of the coming into operation of the sanctioned scheme or any provision thereof, the scheme or such provision shall be binding on the sick industrial company and the transferee company or, as the case may be, the other company and also on the shareholders, creditors and guarantors and employees of the said companies. (9) If any difficulty arises in giving effect to the provisions of the sanctioned scheme, the Board may, on the recommendation of the operating agency (or otherwise), by order do anything, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .....The language of section 22 of the Act is certainly wide. But, in the totality of the circumstances, the safeguard is only against the impediment, that is likely to be caused in the implementation of the scheme. If that be so, only the liability or amounts covered by the scheme will be taken in by section 22 of the Act. So, we are of the view that though the language of section 22 of the Act is of wide import regarding suspension of legal proceedings from the moment an inquiry is started, till after the implementation of the scheme or the disposal of an appeal under section 25 of the Act, it will be reasonable to hold that the bar or embargo envisaged in section 22(1) of the Act can apply only to such of those dues reckoned or included in the sanctioned scheme. Such amounts like sales tax, etc., which the sick industrial company is enabled to collect after the date of the sanctioned scheme legitimately belonging to the Revenue, cannot be and could not have been intended to be covered within section 22 of the Act. Any other construction will be unreasonable and unfair and will lead to a state of affairs enabling the sick industrial unit to collect amounts due to the Revenue and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or other instruments in force, to which such sick industrial company is a party or which may be applicable to such sick industrial company immediately before the date of such order shall remain suspended. Thus, sub-section (3) which suspends the proceedings and further forbids enforceability of any rights, privileges, obligation and liabilities accruing or arising thereunder before the said date refers to a declaration in respect of the matters which were existing immediately before the date thereof. The aforementioned provision, therefore, in our opinion, cannot embrace within its fold any right, privilege, obligation or liabilities accruing after the preparation of the scheme. The declaration postulates suspension of the matters specified therein which were existing immediately before the date of passing of such order and not thereafter. The sanctioned scheme cannot comprehend those which had not been included in the sanctioned scheme. So construed, we are of the opinion that the claim of the appellant herein would not come within the bar envisaged under section 22. 19. The ratio of the Supreme Court in Corromandal Pharmaceutical s case ( supra ), is clear and unambiguous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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