Arbitration award enforcement is not a suit for recovery of money under sick-company stay provisions.

Proceedings under sections 14 and 17 of the Arbitration Act, 1940 for making an award rule of court are not "suits for recovery of money" within section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The term "suit" was given its ordinary civil meaning, referring to a proceeding instituted by plaint, and not to arbitration-related proceedings that do not commence in that manner. The contrast between "suit" and the broader term "proceedings" in the same provision, together with the separate treatment of awards under section 22(3), showed that the stay provision was confined to civil suits and did not automatically extend to arbitral awards.

---

---

Issues: Whether proceedings under sections 14 and 17 of the Arbitration Act, 1940 for making an award rule of the court are covered by the expression "suit for recovery of money" in section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

Analysis: The expression "suit" in section 22(1) was held to bear its ordinary meaning, namely a civil proceeding instituted by presentation of a plaint, as understood under section 9 of the Code of Civil Procedure, 1908. Proceedings under sections 14 and 17 of the Arbitration Act, 1940 do not commence with a plaint or a petition in the nature of a plaint and therefore are not suits. The amended use of the word "suit" in section 22(1), contrasted with the broader word "proceedings" used elsewhere in the section, indicated a restricted legislative intent. The presence of subsection (5), dealing with limitation for enforcement of suspended rights, also supported the conclusion that the amendment was directed to civil suits and not arbitration proceedings. Further, an arbitral award falls within section 22(3), which separately empowers the Board to suspend operation of awards, and that specific treatment excludes awards from the scope of section 22(1).

Conclusion: Arbitration proceedings under sections 14 and 17 of the Arbitration Act, 1940 are not "suits for recovery of money" within section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 and are not automatically stayed under that provision.

---