Statutory bar on winding-up proceedings applies after SICA inquiry begins without BIFR consent.

A winding-up petition under the Companies Act was barred once an inquiry had commenced under section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985, because section 22(1) prohibited continuation of such proceedings without the Board for Industrial and Financial Reconstruction's consent. As no consent was produced, the statutory suspension applied and the petition was not maintainable. The court therefore upheld dismissal of the winding-up petition.

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Issues: Whether a petition for winding up under section 434 of the Companies Act was maintainable after commencement of inquiry under section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985 without the consent of the Board for Industrial and Financial Reconstruction.

Analysis: The petition had been filed after notice had been issued in the inquiry under section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985. Section 22(1) of that Act bars proceedings under the Companies Act after commencement of the inquiry, except with the consent of the Board. No such consent had been produced. In these circumstances, the statutory bar operated against continuation of the petition.

Conclusion: The petition was not maintainable and was rightly dismissed.

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