ARLABS LTD Vs. INTEGRATED FINANCE CO LTD

JUDGEMENT

(1.) Leave under rule 19(3) of the Company Court Rules, 1959 granted to the applicant to take out a Judge's Summons in terms of draft Judge's Summons handed in. Judge's Summons made returnable forthwith. Mr Madon waives service on behalf of respondent.

(2.) Heard learned counsel for both the sides. By order dated 22nd April 1998 passed in company petition No.946 of 1997, the applicant was directed to deposit an amount of Rs.2,48,64,154.61 in this Court within a period of three months from the date of communication of the order. The consequence of not making this payment was provided in the order i.e. petition stands admitted. The learned counsel for the applicant now pointed out that a reference under the Sick Industrial Companies (Special Provisions) Act, 1985 has been registered even much before the order was passed by this Court i.e. 22nd April 1998. Considering the provisions of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 , in my opinion, the reference was registered before this Court passed an order and consequently the proceedings have to be stayed. The application is therefore granted in terms of prayer clause (a). Further proceedings in company petition No.946 of 1997 are adjourned sine die. Company to inform the Advocate for the petitioner and the Company Registrar about any development in the matter.