TARUN SHAH Vs. PERFECT THREAD MILLS LIMITED

JUDGEMENT

(1.) IT is contended by learned counsel for the non -petitioner that the present petition moved under Section 434 of the Companies Act is not maintainable as it has been filed after the commencement of inquiry under Section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985 (in short ' the Act'). Learned counsel for the petitioner does not dispute the position.

(2.) ADMITTEDLY , the present petition under Section 434 of the Companies Act was filed in this court on January 20, 1988. The Board for Industrial and Financial Reconstruction (Bench III), New Delhi, issued notice No, 217 of 1987 dated January 7, 1988. In respect of the enquiry under Section 16 of the Act to the company and a photostat copy of this notice has been filed as annezure R -1 with the application dated August 16, 1988, moved under Section 22 of the Act along with an affidavit. It is clearly provided in Sub -section (1) of Section 22 of the Act that no application under the Companies Act will lie after the commencement of the enquiry under Section 16 of the Act except with the consent of the Board for Industrial and Financial Reconstruction. Admittedly, no consent has been filed so far. As such, the petition moved under Section 434 of the Companies Act is not maintainable.