Statutory bar on winding-up proceedings applies while sick company proceedings are pending, unless Board consent is obtained.

Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 bars winding-up proceedings where a sick company reference, inquiry, scheme process, or appeal is pending, unless consent is obtained from the Board or Appellate Authority. The bar applies both to institution of a fresh petition and to continuation of proceedings already filed. Where the company had already been declared sick and the reference was pending before the Board when the winding-up petition was presented, the petition was not maintainable. Section 22(5) preserves limitation by excluding the suspension period, so the creditor's remedy remains available if consent is later secured.

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Issues: Whether a company petition for winding up was maintainable when the respondent-company was already declared a sick industrial company and proceedings were pending before the Board for Industrial and Financial Reconstruction.

Analysis: Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 creates a statutory bar against winding-up proceedings where an inquiry under section 16 is pending, a scheme under section 17 is under preparation or consideration, a sanctioned scheme is under implementation, or an appeal under section 25 is pending, unless consent of the Board or Appellate Authority is obtained. The provision operates both at the pre-initiation stage, where the expression "shall lie" bars institution of proceedings, and at the post-initiation stage, where "be proceeded with" suspends pending proceedings. As the respondent had already been declared sick and the reference was pending before the Board when the petition was filed, the bar applied and the petition could not be entertained. Section 22(5) preserves limitation by excluding the period of suspension, so the petitioner's remedy is not extinguished.

Conclusion: The winding-up petition was not maintainable and was barred by section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

Final Conclusion: The company petition was dismissed, with liberty to seek the Board's permission and pursue winding-up proceedings in accordance with law if consent is obtained.

Ratio Decidendi: Where a company is already before the Board under the Sick Industrial Companies (Special Provisions) Act, 1985, a later-filed winding-up petition cannot be entertained without the Board's consent because section 22(1) bars both institution and continuation of such proceedings.

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