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TMI Blog2003 (6) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... ner was employed under the third respondent and ultimately retired from service in June 1999. The third respondent has not paid the amount payable towards gratuity forcing the petitioner to file P.G. case No. 146 of 2000 under section 7 of Payment of Gratuity Act, 1972 before the Assistant Commissioner of Labour. By order dated 16-10-2000, the Assistant Commissioner of Labour issued a direction to the third respondent to pay a sum of Rs. 80,979 with interest at the rate of 10% per annum. However, since the amount remained unpaid, on the petition of the petitioner, the Assistant Commissioner issued a certificate under section 8 of the Tamil Nadu Revenue Recovery Act for realisation of the amount. Since no action had been taken on the certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act or other law, no proceedings for the winding-up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority. (2)****** (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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings which are automatically suspended are: (1) Winding-up of the industrial company; (2) Proceedings for execution, distress or the like against the properties of Sick Industrial Company and (3) Proceedings for the appointment of Receiver. The proceedings in respect of these matters could, however, be continued against the sick industrial company with the consent or approval of the Board or of the Appellate Authority as the case may be." (p. 1019) 6. In Maharashtra Tubes Ltd. v. State Industrial Investment Corpn. of Maharashtra Ltd. [1993] 2 SCC 144 it was observed thus: ". . . The basic idea is to revive sick units, if necessary, by extending further financial assistance after a thorough examination of the units by exper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strial company which, during the relevant time, acts under the guidance/control or supervision of the Board (BIFR). Any step for execution, distress or the like against the properties of the industrial company or other similar steps should not be pursued which will cause delay or impediment in the implementation of the sanctioned scheme. . . ." (p. 2032) 8. Thereafter in Tata Davy Ltd. v. State of Orissa AIR 1998 SC 2928, it was observed as follows: "11. The Vallabh Glass Works judgment covers there appeals. Arrears of taxes and the like due from sick industrial companies that satisfy the conditions set out in section 22(1) of the Central Act cannot be recovered by coercive process unless the said Board gives its consent thereto. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er law in section 22 cannot, therefore, be read in the manner suggested by learned counsel for the respondents. 13. The Corromandal Pharmaceuticals Judgment 1997 AIR SCW 1816 dealt with a sick industrial company which was enabled to collect amounts like sales tax after the date of the sanctioned scheme. This Court said, 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 . It added that the issue that had been arisen before it has not arisen in the case of Vallabh Glass Works AIR 1990 SC 1017. It did not appear therefrom or from any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in W.P. No. 8294/2002, in matter relating to payment of gratuity, the learned Judge of this Court again followed the aforesaid decision in the writ appeal and has observed that without the consent of the Board no such proceedings can be continued. 11. The learned counsel appearing for the petitioner has however relying upon several decisions contended that section 22 of the Act is not intended to stall the proceedings relating to the realisation of the dues of a workman. He has particularly placed reliance upon the following decisions in support of his contention : 1. Modi Industries Ltd. v. Addl. Labour Commissioner 1994 Lab. I.C. 1609 (All.) 2. Baburao P. Tawade v. HES Ltd. 1995 LAB I.C. 2200 (Bom.) 3. Rajnagar Textile ..... X X X X Extracts X X X X X X X X Extracts X X X X
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