CREATIVE WARES LTD Vs. SCJ PLASTICES LTD

JUDGEMENT

(1.) Heard the learned counsel for the appellant on this appeal, which is filed against the order dated 9th December, 2005 passed by the learned Single Judge. Learned counsel for the appellant submits before us that for deciding the application under Sections 21 and 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as SICA. for short), personal properties of the Managing Director and his family members have no relevance and, therefore, the order passed by the learned Single Judge calling for detailed affidavit regarding assets of the Managing Director, his wife and dependent children is unjustified and contrary to law.

(2.) The respondent herein has filed a suit against the appellant for recovery of an amount of Rs.36,06,238/- along with interest. On going through the records, we find that the aforesaid suit is filed as against the appellant-company and not against the Managing Director or any other Director of the Company. It is also established from the records that a reference to the BIFR for declaring the appellant-Company as a sick company is pending and the said reference was registered by the BIFR under order dated 31.1.2001. It also appears that the BIFR has passed an order directing for change of management. Being aggrieved by the said order, the appellant filed an appeal and the said application is now pending before appellate authority namely AAIFR. We are also informed that arguments in the said appeal have been heard and judgment is reserved. Be that as it may, there is already an order by the appellate authority staying the operation of the order passed by the BIFR for change of management.

(3.) In any case, what is required to be decided by the learned Single Judge is an application filed by the appellant under Sections 21 and 22 of the SICA. In our considered opinion, the information as sought for by the learned Single Judge appears to be beyond the scope of issue involved in the case and, therefore, the said information may not be necessary at this stage. There are no allegations against the Managing Director or his family members. Nothing in this regard can be spelled out from the impugned order. In these circumstances, learned Single Judge may proceed to decide the said application in accordance with law.