HYTAISUN MAGNETICS LTD Vs. PARULBEN JAYVEER JHAVERI

JUDGEMENT

(1.) BY way of present petition, the petitioner has challenged the order dated 28.04.2005 passed by the learned Chamber Judge of the City Civil Court, Ahmedabad inter-alia rejecting application Exh. 23 moved by the petitioner company seeking stay of Summary Suit No. 367 of 2003 filed by the respondent No.1 against the petitioner and respondent No.2 on the ground that the petitioner is a 'sick company' and has filed reference before the Board for Industrial and Financial Reconstruction(B.I.F.R) which is duly registered and pending with the B.I.F.R, New Delhi.

(2.) THE facts of the case are that the B.I.F.R has registered the reference filed by the petitioner under the provisions of Sick Industrial Companies ( Special Provisions) Act 1985 ( hereinafter referred to as SICA) as case No. 458 of 2002 on 14.11.2002. On 07.02.2003, the respondent No. 1 filed Summary Suit No. 367 of 2003 against the petitioner and respondent No.2 for recovery of Rs. 3,80,000/- before the City Civil Court,Ahmedabad. On 23.07.2004, the petitioner moved application Exh. 23 seeking stay of the Summary Suit No. 367 of 2003. On 28.04.2005, the learned Chamber Judge of the City Civil Court, Ahmedabad rejected the above Stay Application Exh. 23. Hence, this petition.

(3.) IT is also found that there is no notification published regarding the Repealment of the Act. The same will come into force only on publication of the same in Government Gazette. In that view of the matter, the contention of learned advocate for the petitioner that there is no notification published by B.I.F.R regarding repealment of SICA Repeal Act is required to be accepted. The observation made by the learned Judge regarding the repealment of the SICA Act is devoid of merits. However, in view of the fact that no B.I.F.R proceedings are pending, the order of the trial Court is just and proper. With the above observations, the petition is disposed of. Rule is discharged with no order as to costs.