Section 22 sick company protection does not bar criminal prosecution under section 406 for alleged sales tax non-payment.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 stays civil and recovery proceedings, including winding up, execution, distress, receivership, and suits for recovery of money, but it does not extend to criminal prosecution under the Penal Code. A prosecution under section 406 of the Indian Penal Code for alleged non-payment of collected sales tax is not a recovery proceeding and does not fall within "execution, distress or the like".

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Issues: Whether section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 bars criminal prosecution under section 406 of the Indian Penal Code, 1860 in relation to alleged non-payment of collected sales tax.

Analysis: Section 22 stays proceedings of a civil or recovery nature, such as winding up, execution, distress, appointment of a receiver, or suits for recovery of money and enforcement of security, except with the requisite consent. The provision does not extend to criminal proceedings for an offence under the Penal Code. The recovery cases relied upon by the applicants concerned execution or distress and did not govern prosecution for breach of penal law. A prosecution under section 406 of the Indian Penal Code is not a recovery proceeding and does not fall within the expression "execution, distress or the like".

Conclusion: Section 22 does not bar criminal prosecution under section 406 of the Indian Penal Code for the alleged offence relating to sales tax collection and non-payment.

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