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1 - 4 of 4 (0.36 seconds)The Industrial Disputes Act, 1947
U.P. State Sugar Corpn. Ltd vs U.P. State Sugar Corpn. Karamchari ... on 2 May, 1995
Explanation: - For the removal of doubts, it is hereby declared that an
industrial company existing immediately before the commencement of the Sick
Industrial Companies (Special Provisions) Amendment Act, 1993, registered
for not less than five years and having at the end of any financial year
accumulated losses equal to or exceeding its entire net worth, shall be
deemed to be a sick industrial company;”
It is clear from a plain reading of Section 22 A of the Act that the Board
can issue a direction not to dispose of assets only to a sick industrial
company. There is no dispute that the First Respondent is not a sick
industrial company and that it purchased the assets from a sick industrial
company in accordance with the Sanctioned Scheme. The BIFR was not correct
in passing an order of status quo and directing the First Respondent not to
alienate/transfer the assets by its orders dated 05.05.2008 and 30.06.2008.
We agree with the findings of the High Court in the impugned judgment that
the BIFR does not have competence to issue directions to a company which is
not a sick industrial company under Section 22 A of the Act. We are
fortified in this view by a judgment of this Court in U.P. State Sugar
Corporation Ltd. v. U.P. State Sugar Corporation Karamchari Association and
Anr. reported in (1995) 4 SCC 276 wherein it was held as follows:
Section 20 in The Industrial Disputes Act, 1947 [Entire Act]
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