Madras High Court
Sree Aravindh Steel Limited vs Deputy Commr. Of C. Ex., Trichy on 31 October, 2001
Equivalent citations: 2002(139)ELT510(MAD)
Author: F.M. Ibrahim Kalifulla
Bench: F.M. Ibrahim Kalifulla
ORDER
1. These petitions coming on for hearing upon perusing these petitions and the respective affidavits and upon hearing the arguments of Mr. K. Jayachandran, Advocate for the petitioners in both the WMPS. 10857 & 10859/2001 and for the Respondents in W.V.M.P. No. 22713/2001, and of Mr. K. Veeraraghavan, Additional Central Government Standing Counsel on behalf of the Respondents in W.M.P. Nos. 10857 & 10859/2001 and for the petitioners in W.V.M.P. No. 22713/2001, the Court made the following order :-
"On a perusal of the materials placed before this Court. I find that as early as on 12-3-2001, the petitioner was declared as a Sick Industrial Company under Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and thereafter Indian Overseas Bank was appointed as an Operating Agency for conducting a Techno-economical viability study of the petitioner's company and for preparation of a rehabilitation scheme under Section 17(3) of the said Act."
2. Under such circumstances, Section 22 of the said Act automatically comes into operation which would suspend any claim like that of the one made by the respondents herein. The respondents can only work out their remedy by approaching the Board for Industrial and Financial Reconstruction (B1FR) if they still wish to seek for recovery or for making any demand.
3. I therefore do not find any scope for vacating the interim injunction granted by this Court on 18-4-2001.
4. Therefore, the injunction is made absolute. Consequently, W.M.P. Nos. 10857 and 10859 of 2001 are allowed. W.V.M.P. No, 22713 of 2001 is dismissed. No costs.