GSL INDIA LIMITED Vs. BAYER ABS LIMITED

JUDGEMENT

(1.) This Application is by GSL (India) Limited.

(2.) This Judges summons has been taken out by GSL (India) Limited in Company Petition No. 295 of 1996 to make an order under Section 442 of the Companies Act and to stay further proceedings pending in the various Metropolitan Magistrate Courts, on complaints lodged by its creditor under Section 138 of the Negotiable Instruments Act because the cheques drawn by the company for paying its outstanding have been returned by the bank unpaid either because of the amount standing to the credit of its account was insufficient to honour the cheque or that it exceeded the amount arranged to be paid from the account by an agreement made with the bank. The application has been made because Company Petition No. 295 of 1996 as well as various other company petitions for the winding up of the applicant company have been presented before this court and are pending for final decision. The list of other winding up petitions pending in this court have been annexed to the judges summons as Annexure-`C'.

(3.) The application for stay of the proceedings under Section 138 of the Negotiable Instruments Act pending decision of the winding petitions have been made on the ground that the Government of Gujarat in exercise of power conferred on it under Section 3 of the Bombay Relief Undertaking (Special Provisions) Act, 1956 has declared the applicant company w.e.f. 27th March, 1997 as a `relief undertaking' and certain directions have been issued in exercise of power conferred under Section 4(i)(c)(iv) of the said Act in relation to the applicant company. The declaration of the company as a relief undertaking also included direction that all rights, privileges, obligations or liabilities other than liabilities, arising from law in relation to workers of the `relief undertaking,' accrued or incurred before the said undertaking was declared a relief undertaking and any remedy for the enforcement thereof, are suspended and all proceedings relating thereto pending before any Court, Tribunal, Officer or Authority shall be stayed during the period for which this undertaking continues as a relief undertaking.