Section 22 suspension of recovery suits under SICA bars civil court jurisdiction and voids decrees passed during pending BIFR inquiry.

Where an inquiry under section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985 was pending before the BIFR, section 22(1) barred a suit for recovery of money against the sick industrial company unless the Board's consent was obtained. The Court treated the Act as a complete code with overriding effect, so the civil court's jurisdiction was excluded for proceedings covered by the statutory scheme. A decree passed in breach of that statutory bar was without jurisdiction and could not be sustained; the suit was therefore barred and the decree was a nullity.

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Issues: Whether a suit for recovery of money was barred by the suspension provision under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 because an inquiry under section 16 was pending before the BIFR, and whether the decree passed by the civil court was without jurisdiction.

Analysis: A reference had been made to the BIFR before the suit was instituted, and the inquiry under section 16 was pending when the recovery suit was filed. The statutory language of section 22(1) bars proceedings for recovery of money against the industrial company while such inquiry is pending unless consent of the Board is obtained. The Act was treated as a complete code with overriding effect, and the civil court's jurisdiction stood excluded in respect of matters covered by the statutory scheme. A decree passed despite the bar of section 22 was therefore a decree passed without jurisdiction and could not be sustained.

Conclusion: The suit was barred by section 22(1) of the Act, and the decree of the civil court was a nullity. The issue was decided in favour of the appellant.

Final Conclusion: The impugned judgment was set aside and the appeal was allowed, with consequential directions regarding the deposited amount and further consideration by the BIFR.

Ratio Decidendi: When an inquiry under section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985 is pending, section 22(1) suspends recovery proceedings against the sick industrial company, and any decree passed in disregard of that bar is without jurisdiction and void.

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