BENGAL LAMPS LIMITED Vs. FURMANITE NICCO LIMITED

JUDGEMENT

(1.) The respondent filed an application for winding up Bengal Lamps Ltd. (hereinafter referred to as "the company"). The petition was admitted by an order dated March 6, 1990. An appeal was preferred against the order by the company. This application has been filed in the appeal for stay of the order dated March 6, 1990. More than two months after the filing of the appeal, a reference was made by the company under Sec. 15 of the Sick Industrial Companies (Special Provisions) Act to the Board for Industrial and Financial Reconstruction (hereinafter referred to as "the Board") constituted under the Act. The reference has been registered by the secretary of the Board under regulation 19 of the Board for Industrial and Financial Reconstruction Regulations, 1987 (hereinafter referred to as "the Regulations"), on June 25, 1990. These facts were brought on record by way of a supplementary affidavit filed by the company.

(2.) The only question to be determined is whether, under these circumstances, the winding up proceedings against the company must be stayed under the provisions of Sec. 22(1) of the Act. No other point has been put forward in support of the stay application on behalf of the company.

(3.) It is contended by Mr. H. K. Mitra, appearing for the company, that the winding up proceedings must be stayed. In support of this contention, the following submissions have been made :