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TMI Blog2005 (6) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties, the petition is taken up for final disposal. 4. The petitioner-company filed an application before the BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "the said Act") on 4-2-2004. There are various proceedings pending between the petitioner and its secured as well as unsecured creditors where directions have been passed from time to time. 5. The limited question which arises for consideration in the present petition is on account of a prayer made by the petitioner under the provisions of sections 19A and 22(3) of the said Act to avail of the public offer issued on behalf of Holdcem Cements India (P.) Ltd. (HCIPL) for purchase of 23,10,000 equity shares of the face value of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that one of the unsecured creditors M/s. Morgan Securities and Credit (P.) Ltd. (MSCPL) is opposing the present writ petition, this could not be done. 8. Learned counsel for the respondent MSCPL has raised a preliminary objection arising from the provisions of section 15(1) read with section 3(da) of the said Act to contend that the reference itself is not maintainable. On this account in terms of the impugned order, a finding has been made in favour of the petitioner. Learned counsel for MSCPL submits that the said party has in fact a right to go in appeal on this Court before the appellate authority. We do not consider it necessary to go into this question in the present proceedings. The only question is whether the petitioner should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relating to an industrial company is pending, then, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said 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 reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red view, makes it clear that the same has to be made to rehabilitate the applicant-company. Thus, various recoveries and orders are required to kept in abeyance. In our considered view, despite the injunctive orders, such power is vested with the Board under sub-section (3) of section 22. We are unable to accept the submission of learned counsel for the MSCPL that since there is an award in favour of MSCPL, under the Arbitration and Conciliation Act, 1996, which is later Act to the said Act, a higher status has to be conferred upon such an award. The award only results in an enforceable decree with the right of any party to file objections within the parameters permitted under the Arbitration and Conciliation Act, 1996. Thus, it is clear t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n pursuance to the public offer and the amount to be released be kept in a non-lien account of IFCI, the secured credit. However, this amount is to be kept in separate account subject to any directions to be passed by the BIFR in this behalf after hearing the submissions of the secured and the unsecured creditors. This amount is to be kept initially in an FDR for 91 days and can be renewed subject to the directions to be passed by the BIFR.
15. The writ petition stands disposed of leaving the parties to bear their own costs.
16. A request is made at this stage by learned counsel for MSCPL to keep this order in abeyance for seven days. The request is declined.
C.M. No. 7559 of 2005
17. Dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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