ASIAN LOKTO INDUSTRIES LIMITED Vs. NANDAN SALES

JUDGEMENT

(1.) Cma No. 19 of 2016 in Company Appeal No. 6 of 2016 Heard. For the reasons mentioned in the application, delay of 61 days in filing the appeal is condoned. Application stands disposed of.

(2.) In the year 2001, the respondent filed a reference under Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short 'the Act of 1985'). In view thereof and in view of the provisions of Section 22 of the Act of 1985, further proceedings in this petition were not permissible. This petition was filed on 14.07.2008. In view of the pendency of the reference before the Board for Industrial & Financial Reconstruction (BIFR), the petition was by an order dated 18.12.2008 adjourned sine-die.

(3.) By an order dated 15.09.2008, the BIFR rejected the reference on the finding that the appellant's net worth was positive. However, by an order dated 31.01.2011, the AAIFR inter-alia set-aside the order of the BIFR and remanded the matter to the BIFR. Thus, the reference was pending before the BIFR. In view thereof, the statutory stay on account of section 22 of the Act of 1985 continued to operate.