Section 22 bar on execution proceedings against a sick industrial company applied, suspending recovery without Board consent.

Where a reference under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 was pending and the Board had already acted under sections 16 and 17, section 22 barred further execution or coercive recovery proceedings against the industrial company's property unless the Board consented. The pending execution process, including handing over the cheque to the decree-holder, formed part of the prohibited execution proceedings. As no consent of the Board had been obtained, the executing court could not continue, the objection of the judgment debtor succeeded, and the execution proceedings were directed to remain suspended.

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Issues: Whether section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 barred continuation of execution proceedings against an industrial company after a reference under section 15 had been made and enquiry under section 16 had led to preparation of a scheme under section 17.

Analysis: Once a reference had been made to the Board for Industrial and Financial Reconstruction and the Board had proceeded under sections 16 and 17, section 22 came into operation and prohibited further proceedings for execution, distress or the like against the properties of the industrial company except with the consent of the Board. The execution case was still pending, and handing over the cheque to the decree-holder was part of the execution process. No consent of the Board had been obtained, so the executing court could not proceed further.

Conclusion: Section 22 was attracted, and the execution proceedings could not continue without consent of the Board; the objection of the judgment debtor succeeded.

Final Conclusion: The impugned order was set aside and the execution proceedings were directed to remain suspended in accordance with the statutory bar.

Ratio Decidendi: Where a reference under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 is pending and the Board has acted under sections 16 and 17, any execution or coercive recovery proceeding against the industrial company's property is prohibited unless the Board grants consent.

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