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TMI Blog2014 (9) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial Companies (Special Provisions) Act, 1985 (SICA). 3. A reading of the impugned order shows that earlier also an application under Section 22 of SICA was filed and the same was dismissed. The subject application was moved at the stage of final arguments again relying on Section 22 of SICA. Trial court in the impugned order also records that in spite of repeated directions to the petitioner/defendant, no document was filed to show that the debt of the respondent/plaintiff was included in the scheme of rehabilitation of the petitioner-company. 4. In any case, now the issue that a simple suit for recovery of moneys is not barred by Section 22 of SICA is clear from the judgment of the Supreme Court in the case of Raheja Universal Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll outside the ambit of protection of Section 22 of the Act of 1985. 58. Section 22 is the reservoir of the statutory powers empowering the BIFR to determine a scheme, right from its presentation till its complete implementation in accordance with law, free of interjections and interference from other judicial processes. Section 22(1) deals with the execution, distress or the like proceedings against the company's properties, including appointment of a Receiver. It also specifically provides that even a winding up petition would not be instituted and no other proceedings shall lie or proceed further, except with the consent of the BIFR. 77. Section 22 of the Act of 1985 is very significant and of wide ramifications and application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect thereof. 79. The expression 'the like' has to be read ejusdem generis to the term 'proceedings'. The words 'execution, distress or the like' have a definite connotation. These proceedings can have the effect of nullifying or obstructing the sanctioning or implementation of the revival scheme, as contemplated under the provisions of the Act of 1985. This is what is required to be avoided for effective implementation of the scheme. The other facet of the same Section is that, no suit for recovery of money, or for enforcement of any security against the industrial company, or any guarantee in respect of any loan or advance granted to the industrial company shall lie, or be proceeded with further without the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CA are proceedings in the nature of execution, distress or like. It is not every suit or every suit for recovery which automatically becomes proceedings in the nature of execution, distress or like, and only such suits of recovery where there would be proceedings which cause liquidation of assets of a sick company, would be those suits which would be hit by the bar of Section 22 of SICA. 4. In the present case, the suit for recovery of money is a suit for recovery of money simplicitor. Counsel for the plaintiff does not press the interim applications under Order 38 Rule 5 of Code of Civil Procedure, 1908 (CPC) and Order 39 Rules 1 and 2 CPC. Accordingly, in the subject suit, there is no threat to the liquidation of the assets of the sick ..... X X X X Extracts X X X X X X X X Extracts X X X X
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