Sick industrial company stay on sales tax recovery denied absent pending enquiry, scheme, or appeal under the Act.

Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 stays recovery proceedings only when a statutory precondition is met, such as a pending enquiry, a scheme under preparation or consideration, or a pending appeal. Where no enquiry under section 16, no scheme under section 17, and no appeal under section 25 was pending, sales tax recovery proceedings were not automatically suspended. The tribunal also distinguished the cited authorities and noted that, in appropriate cases, the proper course is to seek the Board's consent rather than halt recovery altogether.

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Issues: Whether recovery proceedings for sales tax could be stayed under section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 when no enquiry under section 16, no scheme under section 17, and no appeal under section 25 was pending.

Analysis: Section 22(1) operates only where the statutory preconditions are satisfied, namely pendency of an enquiry, preparation or consideration of a scheme, or a pending appeal under the Act. The proceeding in question was for realisation of sales tax dues, and the Tribunal found that none of the conditions attracting the automatic suspension under section 22(1) existed on the facts. The cited decisions were distinguished on the footing that, in appropriate cases, the proper course is to seek the Board's consent rather than stop recovery proceedings altogether.

Conclusion: The petitioner was not entitled to stay of the recovery proceedings under section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

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