HARKAMAL SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) NONE appears for the petitioner. Counsel for Bharat Wagon & Engineering Company Ltd. is present.

(2.) PETITIONER has filed this application for a direction to the respondent to make payment of dues amount of contract work done by the petitioner and for which the bill duly certified and verified has been submitted.

(3.) COUNTER -affidavit has been filed by the Respondent wherein it has been stated that the petitioner has not been paid as the bill which he has submitted has not been settled in absence of "Labour Payment Certificate." Further, the objection has been made regarding the maintainability of the writ application stating that the respondent -company has been declared sick by the Board for Industrial and Financial Reconstruction (BIFR), Ministry of Finance, Government of India under section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 . Under section 22. of the Act. in respect of an Industrial Company, if an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relating to an industrial company is pending, then, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said Act or other law, no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof [and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company] shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority. Petitioner has placed reliance on a reported decision of 2000(4) PLJR page 217 where in the same circumstances, it has been held that in case of an industry declared sick, bar of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 also includes filing a writ application, as it is covered under word suit, once inquiry under section 16 or 17 of the Act has stated any claim of recovery is not maintainable in terms of Section 22. of the Act.