9911796707
TMI Blog1988 (12) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... , has mainly relied on section 22, sub-section (1) of the said Act, in support of this application. 2. The relevant portion of section 22 of the said Act is as follows: 22. Suspension of legal proceedings, contracts, etc. - (1) Where in respect of 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, 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, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e funds of the banks and financial institutions, it would be imperative to revive and rehabilitate the potentially viable sick industrial companies as quickly as possible. It also states that it would also be equally imperative to salvage any productive assets and realise the amounts due to the banks and financial institutions, to the extent possible, from the non-viable sick industrial companies through liquidation of these companies. Having the above facts in mind, the Statement of Objects and Reasons for enacting the said law states that a need has, therefore, been felt to enact in the public interest a legislation to provide for timely detection of sickness in industrial companies and for expeditious determination, by a body of experts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , includes proceedings in the nature of a suit and that, therefore, such a proceeding shall not lie or be proceeded with further, except with the consent of the Board. I am not prepared to accept this submission of Mr. Mehta. The words or the like appearing in the context of the words preceding, namely, execution, distress and the words appearing subsequent thereto, namely, against any of the properties of the industrial company or for the appointment of a receiver in respect thereof would make the meaning clear. They are to be understood ejusdem generis, meaning thereby such coercive proceeding as may have the effect of seizure and sale of the properties of the company, making it impossible to revive it or to rehabilitate it. 6. Mr. Mehta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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