ANDHRA CEMENTS LTD Vs. NAGARJUNA INVESTMENT TRUST LTD

JUDGEMENT

(1.) This revision petition is filed by the defendant against the order of the learned IV Additional Judge, City Civil Court, Hyderabad, in I.A.No.2125 of 1992 in O.S.No. 1236 of 1992 appointing a Commissioner for the purpose of seizing the machinery of the defendant with the police assistance, bringing the same to Hyderabad and keeping it in the custody of the plaintiff.

(2.) The suit is filed for recovery of of Rs. 8,49,999-59 ps. alleged to be the balance due in respect of the Financing Lease Agreement and also for recovery of the machinery supplied to the defendant. The defence taken in the lower court was that the defendant supplied cement worth Rs. 15,00,000/- and odd to a sister concern of plaintiff-company which was agreed to be adjusted towards instalments payable by the defendant. During the pendency of the civil revision petition, the learned counsel for the petitioner contended that in terms of -Ex. A-l agreement the plaintif has claimed rebate from the Income - tax Department which is liable to be adjusted. It is not necessary to go into the details of the respective contentions of both the parties and the merits of those contentions can be decided only in the suit.

(3.) The only limited question that falls for consideration at this stage is:- Whether by virtue of Section 22 (1) of the Sick Industrial Companies (Special Provisions (Act, 1985 (in short 'the Act') there is bar for the appointment of the Commissioner for the purpose of seizing the machinery of the defendant-company, bringing the same to Hyderabad and keeping the same in the custody of the plaintiff - company?