SICA stay not automatic for consumer execution proceedings when only a BIFR reference or preliminary notice is pending.

Section 22(1) of SICA bars coercive proceedings such as winding up, execution, distress, and recovery only to preserve the assets of an industrial company, and it does not extend to shield directors from compliance with lawful consumer directions. Consumer execution proceedings for non-compliance with refund orders were therefore not shown to be stayed merely because a BIFR reference was pending. A show-cause notice under section 20(1) is only an intermediate step and does not amount to a winding-up opinion forwarded to the High Court. On that basis, the request to stay execution was rejected.

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Issues: Whether proceedings for enforcement of consumer decrees could be stayed under section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 merely because a reference was pending before the Board for Industrial and Financial Reconstruction and a show-cause notice had been issued under section 20(1) of that Act.

Analysis: Section 22(1) creates a bar against proceedings for winding up, execution, distress, recovery of money, and similar coercive steps against the assets of an industrial company, but its object is to preserve the company's assets and not to protect directors from liability for complying with lawful directions. Proceedings under the Consumer Protection Act for non-compliance with refund orders were therefore not shown to be barred merely because the company was under SICA scrutiny. A show-cause notice under section 20(1) is only an intermediate step and does not itself amount to a winding-up opinion forwarded to the High Court so as to attract further consequences.

Conclusion: The request to stay the execution proceedings on the basis of section 22(1) of SICA was rejected, and the revisions were dismissed.

Final Conclusion: The ruling confirms that a pending SICA reference or a preliminary BIFR notice does not, by itself, suspend consumer execution proceedings against the company or its responsible officers.

Ratio Decidendi: Section 22(1) of SICA does not bar execution or enforcement proceedings aimed at compelling compliance with a lawful consumer order where only a preliminary BIFR notice is pending and no winding-up opinion has been forwarded for further action.

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