Section 22(1) Sick Industrial Companies bar applies once BIFR begins an enquiry on a reference, not on filing alone.

A mere reference filed before BIFR under Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not by itself attract the Section 22(1) bar; the bar applies only when an enquiry under Section 16 is pending or a scheme under Sections 17 is under preparation, consideration, or implementation. On the facts, BIFR had scrutinised the reference, allotted a case number, required defects to be cured, and issued notice to affected parties, showing application of mind and commencement of enquiry. Section 22(1) therefore operated, and the company court could not proceed with the winding-up petition, which was directed to remain in abeyance until BIFR decided the reference.

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Issues: Whether the filing and registration of a reference before the Board for Industrial and Financial Reconstruction, followed by issuance of notice by the Board, amounted to a pending enquiry under Section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985 so as to attract the bar under Section 22(1) against continuation of the company petition.

Analysis: The statutory scheme distinguishes between a mere reference under Section 15 and an enquiry under Section 16. Section 22(1) becomes operative only when an enquiry under Section 16 is pending, or a scheme under Section 17 is under preparation or consideration, or a sanctioned scheme is under implementation. A reference by itself does not automatically commence the enquiry. On the facts, the Board had scrutinised the reference, assigned a case number, required defects to be cured, and then issued notice to affected parties by order of the Board. That sequence showed application of mind by the Board and initiation of proceedings on the reference, so the enquiry had to be treated as pending.

Conclusion: The statutory bar under Section 22(1) applied, and the company court could not proceed further with the winding-up petition; the application of the respondent-company was therefore allowed.

Final Conclusion: The company petition was directed to remain in abeyance until the Board for Industrial and Financial Reconstruction decided the respondent-company's reference.

Ratio Decidendi: A reference under Section 15 does not by itself trigger Section 22(1); the bar operates only after the Board has applied its mind and commenced an enquiry under Section 16.

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