9911796707
TMI Blog2000 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... of the notice (Annexure F), a reference under Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, 'the Act') had been made by the petitioner-company to the Board for Industrial and Financial Reconstruction (for short, the BIFR) for preparation and sanction of schemes for reconstruction of the petitioner-company which had become sick. The application u/S. 15 was made on 8-8-1997 the Registrar of the Board and an information in this regard was given to the respondents on 11-8-1997. Again on 12-8-1997 a letter was served on respondent no. 1 which enclosed a memo dated 12-8-1997 from the Registrar of the Board stating that a reference made by the petitioner-company under Section 15 has been registered with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings under the Act has become irrelevant and what is to be seen now is whether the detention notice (Annexure F) still survives and can be acted upon even after passing of the order (Annexure J). 5.I have heard Shri Dholakiya, learned Sr. Counsel with Shri Saboo for the petitioner and Shri B.G. Neema, learned Counsel for respondents. 6.Section 22(1) of the Act provides that; (1) Where in respect of an industrial company, an inquiry u/S. 16 is pending or any scheme referred to u/S. 17 is under preparation or consideration or a sanctioned scheme is under impleme-ntation or where an appeal u/S. 25 relating to an industrial company is pending, then, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the right of the petitioner-Department to make recoveries of its dues does not get washed off on account of the decision of the BIFR. 9.I have very carefully considered the judgment in Corromandal (supra). In fact, that judgment relates to the tax liabilities which have accrued due after passing of the order u/Ss. 18(4) and 19(3) of the Act. There can certainly be no quarrel with the proposition that right of recovery of such dues which may accrue after passing of the order under the aforesaid provisions, remains unaffected. However, in the instant case, the recovery relates to the liability accrued before initiation of the proceedings under the Act and passing of the order by the BIFR. Section 22(1) of the Act clearly places an emba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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