9911796707
TMI Blog2003 (11) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... ect on 20-7-1999 by the Bench-III of the Board for Industrial and Financial Reconstruction in Case No. 96/99 before it. 2. It is the case of the petitioner that pursuant to the order, efforts for reviving the company is on. The petitioner-company is aggrieved by the two demands raised on it as per Annexure-C dated 2-5-2002 in Bo. AEEE-I/AAO/SAI/HT/HBL/2002-03/650 for Rs. 4,13,830 and Annexure-E dated 24-8-2002 in No. DRSD./SA/PI/2077 for Rs. 34,17,627 by the respondent apprising the petitioner as per the communication dated 24-8-2002 (Annexure-E) that on failure of payment within a week therefrom, power supply to the installation will be disconnected. 3. Petitioner, being aggrieved by these demands and the threat of disconnection, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the petitioner has vehemently urged by pointing out to the provisions of section 22 of the Act that the threatened action on the part of the respondents to disconnect the power supply for non-payment of the amounts demanded from the petitioner company is a coercive action and amounts to enforcing a liability on a sick industrial undertaking even during the pendency of the proceedings before the Board, which is not permitted under section 22 of the Act and as such submits that this action is violative of the provisions and requires to be held to be so and the respondent should be restrained from refusing supply of power to the petitioner company. 6. Learned Counsel submits that the word "proceeding" is to be given a wide meaning a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rays for allowing the writ petition by quashing the impugned demands. 7. Sri N.K. Gupta, learned Counsel appearing for the respondents, on the other hand submitted, that the demand by the respondent-Corporation being a security measure and to cover the price for consumption for about three months by consumers, it has been held by Courts that such a demand is justified, particularly having regard to the fact that a consumer is billed and a demand raised on him and the time permitted for such payment in all, roughly taking about three months for the entire circle to be completed and the Courts have sustained demand for three months by the Board. Learned Counsel has placed reliance on the decision of a Division Bench of this Court in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious situations contemplated under section 22 of the Act being in the nature of coercive action and situations even going beyond a legal proceeding and no doubt leaves it open to consider any other situation which is not necessarily in the nature of a legal proceeding, also as to whether it is a proceeding within the meaning of section 22 of the Act. The decision only leaves open scope for such an examination. But in the case on hand, a Division Bench of this Court having examined in identical situation and having concluded that it is not in the nature of a proceeding or a situation contemplated within the meaning of section 22 of the Act, the decision of the Supreme Court is of no assistance for the argument sought to be advanced on behal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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