RENEWABLE ENERGY SYSTEMS Vs. AMAR RAJA BATTERIES LTD

JUDGEMENT

(1.) Heard both sides.

(2.) In these petitions, the proceedings in the relevant calendar cases in which the petitioners are sought to be prosecuted for an offence under Section 138 of the Negotiable Instruments Act are sought to be quashed mainly on the ground that the accused in these cases being companies, a reference under Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short 'the Act') having been made and enquiry in respect of these companies being pending under Section 16 of the Act, the proceedings to prosecute these companies cannot be continued in view of Section 22 of the said Act.

(3.) It is not disputed that in all these cases, a reference has been made in respect of the petitioner companies to the Board for Industrial and Financial Reconstruction (BIFR) under Section 15 of the Act for determining the company as a Sick Industry. Once a reference has been made under Section 15, the Board is empowered to enquiry in such manner as it may deem fit in respect of the sick industry under Section 16 of the Act. It is also not disputed that in these cases, enquiry under Section 16 of the Act can be said to be pending.