Leased machinery and sick company protection: section 22 does not block repossession where title stays with the financier.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not bar repossession of leased machinery where the lease terms reserve title in the financier and the equipment remains the lessor's property. The statutory protection applies only to the assets of the sick company, so a plea of sickness or pending BIFR proceedings cannot ? resist delivery of equipment not owned by the company. The document also notes that admissions of disbursement and default satisfied the requirements for relief on admissions, supporting a decree directing delivery of possession of the diesel generating sets.

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Issues: Whether the bar under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 applied to a suit for repossession of leased machinery owned by the plaintiff and whether a decree on admissions could be granted.

Analysis: The suit related to two diesel generating sets given on lease finance, with the lease terms expressly reserving ownership in the plaintiff and treating the equipment as the lessor's property. The defendant's plea of sickness and pending BIFR proceedings did not extend the statutory bar to assets not belonging to the company. Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 protects only the property and assets of the sick company, and cannot be invoked to resist repossession of leased equipment whose title remained with the financier. In view of the defendant's admissions regarding disbursement of the lease finance and default, the requirements for relief on admissions were satisfied.

Conclusion: The statutory bar was inapplicable, and the plaintiff was entitled to a decree on admissions for mandatory injunction directing delivery of possession of the diesel generating sets.

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