9911796707
TMI Blog1993 (12) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed by the court on October 14, 1993, and a special appeal filed against that order is pending consideration before the Division Bench. 3. In this application filed on December 8, 1993, a prayer has been made for dismissal of the petition filed for liquidation on the ground that after October 14, 1993, a number of developments have taken place and they show that enquiry under Section 16 of the Act has been initiated and is pending. 4. Shri S. M. Mehta, senior advocate, appearing for the respondent-company, has invited the court's attention to the fact that the board of directors of the respondent-company had in their meeting held on July 29, 1993, resolved to make a reference under Section 15(1) of the Act to the Board for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to him has been introduced in Parliament for amendment of the Act. Shri Mehta invited the court's attention to some amendments introduced with reference to Section 16(3) of the Act and submitted that this Bill is also indicative of the intention of the Legislature that as soon as an application is submitted by the board of directors of the company under Section 15 of the Act, the enquiry must be deemed to have commenced and must be deemed to be pending for the purposes of Section 22(1). Shri Paras Kuhad, learned counsel for the petitioner, has strenuously argued that the application dated December 8, 1993, filed by the respondent-company is frivolous and vexatious and it has been filed with the sole object to delay the hearing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of that provision, no proceeding 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 shall lie or be proceeded with further except with the consent of the Board or of the appellate authority, as the case may be. However, before application of Section 22(1) is attracted, there must be an enquiry under Section 16 pending or any scheme referred to under Section 17 under preparation or consideration or a sanctioned scheme under implementation or an appeal under Section 25 relating to an industrial company pending. Thus, till any of the three eventualities are the provisions of Section 22(1) ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te an enquiry, cannot be equated with commencement of the enquiry envisaged under Section 16(1) and an enquiry can be treated as pending only after it has commenced and not prior to that. 6. If in the light of the above quoted observations the present day position of the reference made by the respondent-company to the BIFR is examined, it is clearly revealed that after October 14, 1993, the reference has been registered by the Registrar of the Board. Case number has been given to the respondent-company as 509 of 1993. Defects pointed out by the Registrar of the Board have been rectified by the company and then a notice dated November 30, 1993, has been issued by the Board. Anncxure 3 clearly shows that although the notice has been signe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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