Section 22 Sick Industrial Companies stay does not extend to creditor claims outside the sanctioned rehabilitation scheme.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 stays proceedings only to the extent they would obstruct implementation of a sanctioned rehabilitation scheme. Where the creditor's claim arose after the scheme and was not included in either the original or modified scheme, the statutory bar does not extend to that independent liability. On those facts, the winding up proceeding was not covered by section 22 and the request for dismissal or stay was rejected.

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Issues: Whether a winding up proceeding can be stayed under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 when the creditor's claim is not included in the sanctioned rehabilitation scheme.

Analysis: The bar under section 22 is intended to prevent steps that would impede implementation of a sanctioned scheme for revival of a sick industrial company. On the facts found, the creditor's dues arose after the scheme and were not included in either the original or modified scheme. The decision follows the principle that the statutory suspension operates in relation to liabilities reckoned or included in the sanctioned scheme, and does not automatically cover independent claims dehors the scheme.

Conclusion: The winding up proceeding was not hit by section 22 on these facts, and the application seeking dismissal or stay was rejected.

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