Workmen's compensation recovery is not barred by SICA where the claim is a statutory welfare entitlement, not a protected commercial liability.

Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 does not bar recovery proceedings to enforce a workmen's compensation award under section 31 of the Workmen's Compensation Act, 1923. Compensation becomes due on adjudication and is a statutory welfare entitlement that the employer must pay promptly; if unpaid, recovery may proceed through a certificate under section 31. The embargo in section 22(1) applies only to liabilities covered by the sanctioned scheme or other claims within its protective scope, and not to this kind of statutory compensation. The recovery certificate is therefore maintainable.

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Issues: Whether section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 bars recovery proceedings to enforce a workmen's compensation award under section 31 of the Workmen's Compensation Act, 1923.

Analysis: Compensation under the Workmen's Compensation Act becomes due on adjudication and the employer is statutorily bound to pay it promptly. The Act treats the compensation as a workman's enforceable entitlement, and recovery may be pursued through a certificate under section 31 when payment is not made. Section 22(1) of the SICA bars coercive proceedings only in respect of liabilities covered by the sanctioned scheme or claims falling within the statutory embargo. The compensation payable to an injured workman is a statutory welfare payment, not a commercial liability of the kind intended to be protected by section 22(1). It also forms part of the company's day-to-day obligations and cannot be withheld merely because the employer has been declared sick.

Conclusion: Section 22(1) of the SICA does not bar enforcement of the workmen's compensation recovery certificate, and the recovery proceedings are maintainable.

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