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: (i) Whether the mere filing of a reference before the Board for Industrial and Financial Reconstruction and its receipt subject to verification suspended the winding-up proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985. (ii) Whether the admitted indebtedness and the conduct of the company justified admission of the winding-up petition under the Companies Act, 1956.
Issue (i): Whether the mere filing of a reference before the Board for Industrial and Financial Reconstruction and its receipt subject to verification suspended the winding-up proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985.
Analysis: The statutory stay under section 22 operates only when the reference has been duly registered after scrutiny and the Board has commenced the statutory inquiry. A mere letter forwarding Form A, or its acknowledgment subject to verification, does not by itself amount to registration of a reference or trigger automatic suspension of other proceedings. The company had not shown that any effective action had been taken by the Board when the matter was heard.
Conclusion: The request to suspend the winding-up proceedings on the basis of the BIFR reference failed.
Issue (ii): Whether the admitted indebtedness and the conduct of the company justified admission of the winding-up petition under the Companies Act, 1956.
Analysis: The debt was admitted throughout, and no credible repayment was made despite repeated opportunities. The company's conduct was treated as lacking bona fides, and its inability to pay the admitted debt was found to be established. In such circumstances, the winding-up jurisdiction could properly be invoked and the petition admitted.
Conclusion: The winding-up petition was rightly admitted in favour of the petitioner.
Final Conclusion: The company could not invoke the BIFR reference to stall the proceedings, and its admitted inability to discharge the debt warranted admission of the winding-up petition for further proceedings.
Ratio Decidendi: A statutory stay under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 arises only after a reference is duly registered and the inquiry commences; a mere filing or acknowledgment subject to verification does not suspend winding-up proceedings, and an admitted debt with lack of bona fide repayment effort supports admission of the petition.
TaxTMI 
TaxTMI 
