SABU CHACKO Vs. THE STEEL INDUSTRIALS KERALA LIMITED

JUDGEMENT

(1.) The first respondent has entered into an agreement with the petitioner for execution of a work for the fifth respondent. The work has been executed by the petitioner in full. There is no dispute to this fact. A sum of Rs.91.84 lakhs has been paid by the first respondent towards the amount payable to the petitioner in connection with the said work. According to the petitioner, a further sum of Rs.6,73,086/- is due to him in respect of the work and in addition, a sum of Rs.8,43,721.80 retained from his bills also needs to be released to him by the first respondent.

(2.) A statement has been filed in this case by the first respondent in which the first respondent admits that a sum of Rs.6,97,605.45 is payable to the petitioner. The explanation offered by the first respondent for non- payment of the amounts due to the petitioner is that proceedings under the Sick Industrial Companies (Special Provisions) Act ('the Act' for short) is pending against the petitioner and in the light of Section 22 of the Act, they cannot disburse the admitted amounts due to the petitioner without orders from the Board for Industrial and Financial Reconstruction (hereinafter referred to as 'the BIFR' for short).

(3.) Heard the learned counsel for the petitioner as also the learned counsel for the respondents 1, 4 and 5.