TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 barred continuation or stay of winding up proceedings after a winding up order had already been made against the company.
Analysis: The Court construed the expression "proceeding" in section 22(1) as referring to the winding up process up to the point of a final order of winding up. Once the company had already been ordered to be wound up, the proceeding for winding up was treated as having reached its culmination, and the subsequent regime governing a company in liquidation under the Companies Act, 1956, would operate. The Court accepted the view that the Board for Industrial and Financial Reconstruction could deal with an existing sick company at the pre-winding-up stage, but not with a company already in liquidation.
Conclusion: Section 22(1) did not bar the winding up order or justify stay of its operation after the company had been wound up. The BIFR had no jurisdiction to initiate or entertain proceedings relating to the company in liquidation.
Final Conclusion: The application for stay failed, and the appeal was dismissed.
Ratio Decidendi: Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 protects only pending winding up proceedings before a final winding up order and does not apply once the company has already been wound up and entered liquidation.
TaxTMI 
TaxTMI 
