RAM KISHAN Vs. KANWAR PAPERS PVT. LTD.

JUDGEMENT

(1.) THIS application has been moved by the respondent -applicant with a prayer to stay the proceedings in the main appeal pending completion of enquiry under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (Act No. 1 of 1986) (briefly 'the Act').

(2.) IT is averred in the application that the applicant -company is covered by the provisions of the Act and has become a sick company. The board of directors of the company had made a reference to the Board for Industrial and Financial Reconstruction constituted under the Act for determination of the measures required to be adopted with respect to the company. It is also averred that the reference has since been registered as Case No. 163 of 1989 with the Board and proceedings for enquiry into the working of the company under Section 16 of the Act are pending before it, and, therefore, in view of the provisions of Section 22 of the Act, proceedings in the appeal deserve tobe stayed.

(3.) WE have heard learned counsel for the parties. The contention of learned counsel for the appellant is not tenable as the entire basis of his arguments is on the plea pertaining to the definition of public financial institution given in Section 3(k) of the Act. 'Company' and 'industrial company' have been defined in Section 3(d) and (e) of the Act as follows :