Suspension of proceedings does not bar matured deposit repayment claims under company law; repayment order upheld.

Section 22 of the Sick Industrial Undertakings (Special Provisions) Act, 1985 did not bar depositors' applications under section 58A(9) of the Companies Act, 1956 for repayment of matured deposits. The court held that a claim for return of matured deposits is not a suit for recovery of money within the meaning of the suspension provision, because deposits are sums placed with the company for return on maturity and are not ordinary loans. Applying an earlier Division Bench ruling on the same issue, the defence based on section 22 was rejected and the repayment direction with interest was sustained.

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Issues: Whether section 22 of the Sick Industrial Undertakings (Special Provisions) Act, 1985 barred proceedings under section 58A(9) of the Companies Act, 1956 for repayment of matured deposits to depositors.

Analysis: Section 22 suspends specified proceedings against a sick industrial company during pendency of inquiry or sanctioned proceedings, but the bar is not to be extended beyond its language. A claim by depositors for return of matured deposits is not in the nature of a suit for recovery of money in the sense contemplated by section 22, because deposits are sums kept with the company for return on maturity and do not amount to ordinary loans. The earlier Division Bench decision on an identical question was applied, and the defence based on section 22 was rejected.

Conclusion: Section 22 did not bar the depositors' applications under section 58A(9), and the direction for repayment with interest was sustained against the appellant.

Final Conclusion: The appeal failed and the repayment order in favour of the depositors remained in force, with the amounts to be settled within the time fixed and interest payable for delay.

Ratio Decidendi: The statutory suspension under section 22 of the Sick Industrial Undertakings (Special Provisions) Act, 1985 does not extend to a depositors' claim for return of matured deposits under section 58A(9) of the Companies Act, 1956, since such a claim is not a suit for recovery of money within the meaning of the bar.

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