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Issues: Whether pending proceedings before the Board for Industrial and Financial Reconstruction barred enforcement of the undertaking to pay electricity dues and prevented disconnection for default.
Analysis: Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 suspends specified proceedings such as winding up, execution, distress, recovery suits, and similar coercive actions against an industrial company when an inquiry or sanctioned scheme is pending. The provision does not extend to enforcement of a contractual or regulatory obligation to continue payment for supply of electricity, nor does such enforcement amount to execution of a decree. Where the consumer had agreed to pay the outstanding amount in instalments as a condition for reconnection and then defaulted, the obligation remained enforceable despite the pending proceedings before the Board for Industrial and Financial Reconstruction.
Conclusion: The pending proceedings before the Board for Industrial and Financial Reconstruction did not entitle the petitioner to electricity supply without complying with the payment obligation, and the claim for relief was rejected.
Ratio Decidendi: Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 stays only the specified coercive proceedings and does not bar enforcement of an independent contractual obligation for payment of electricity dues.
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