PREM AGGARWAL Vs. LALIT FABRICS

JUDGEMENT

(1.) The question revolves around sub section 1 of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 as amended by the Sick Industrial Companies (S.P.) Amendment Act, 1993. It runs as under:

(2.) The plea of the defendant is that in view of the provision notice above, the suit instituted by the plaintiff under Order 37 of the Code Civil Procedure for recovery of money cannot be proceeded further except with the consent of the Board for Industrial and Financial Reconstruction and that till such consent is obtained the suit ought be stayed.

(3.) The contention of the defendant has not found favour with the plaintiff. It was argued that the suit being under Order 37 of the Code of Civil Procedure and no application for leave to defend having be moved, a valuable right had accrued to the plaintiff and since only decree remains to be passed, section 22 of the Act would not come into play was further argued that since only the formality of passing of the decree remained, the case would not be covered by the words "be proceed with further" as no further "proceedings" were required to be taken.