TaxTMI Login
Just a moment...
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
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the order of winding up was liable to be set aside on the ground that a reference before the Board for Industrial and Financial Reconstruction was pending; (ii) Whether further proceedings in the company petition were required to be stayed pending disposal of the reference.
Issue (i): Whether the order of winding up was liable to be set aside on the ground that a reference before the Board for Industrial and Financial Reconstruction was pending.
Analysis: The application to set aside the winding up order was considered against the admitted chronology. The reference under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 was registered only after the winding up order had already been passed. On the date of the winding up order, no legally established material had been placed before the Company Court to show that the statutory bar under section 22 had commenced. The order of winding up was therefore treated as valid when made, and the later production of proof of registration did not invalidate it retrospectively.
Conclusion: The winding up order was not set aside.
Issue (ii): Whether further proceedings in the company petition were required to be stayed pending disposal of the reference.
Analysis: The Court applied the principle that a winding up order is not the culmination of company court proceedings but the commencement of the winding up process. It accepted that section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 can operate even after a winding up order, once a valid reference is pending before the Board for Industrial and Financial Reconstruction. The statutory protection was held to extend to further proceedings, while not disturbing the legal consequences already flowing from the winding up order.
Conclusion: Further proceedings in the company petition were stayed pending disposal of the reference before the Board for Industrial and Financial Reconstruction.
Final Conclusion: The winding up order remained undisturbed, but the company petition could not proceed further until the reference before the Board for Industrial and Financial Reconstruction was concluded.
Ratio Decidendi: Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 can stay further proceedings even after a winding up order has been passed, but it does not retrospectively invalidate a winding up order validly made when no established bar was shown to exist.
TaxTMI 
