RITES LTD Vs. BIHAR SPONGE IRON LTD

JUDGEMENT

(1.) HEARD learned counsel for the parties. The decree holder seeks execution of a decree of this Court dated 19th January, 2005 for a sum of rs. 1,41,28,854/- along with interest.

(2.) THE judgment debtor objects to maintainability of these proceedings through an application, EA 54/2008. The judgment debtor contends that the company was declared as a sick Industrial company under Sick Industries companies (Special Provisions) Act, 1985 (hereinafter referred to as the `sica"), and that an operating agency was appointed. The applicant/judgment debtor has placed on record a summary record of proceedings of hearing and scheme sanctioned by the Board for Industrial and Financial Re-construction (BIFR), on 29. 07. 2004 The counsel for judgment debtor also contends that proceedings are still on and have not been terminated and as per the mandate of section 22 the present execution is not maintainable.

(3.) LEARNED counsel for the decree holder contests the proposition of the judgment debtor. He relied upon the decision of the Supreme Court in Deputy commercial Tax Officer and Others Vs. Corromandal Pharmaceuticals and Others, air 1997 Supreme Court 2027, and the decision of the learned Single Judge of this Court in U. P. State Spinning Co. Ltd. Vs. T. T. Limited and Anr. 141 (2007) DLT 83 and Cement Corporation of India Ltd. and Ors. Vs. M. P. Joseph, 111 (2004) DLT 120. It is therefore contended that so long as the debt in question is not included in the scheme or is not within the contemplation of the Board, the decree holder or the person entitled to execute the decree, is at liberty to seek its enforcement in accordance with law.