Statutory stay for sick industrial companies extends to pronouncement of reserved judgments and all post-hearing steps.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 was read broadly to bar further judicial steps after arguments are heard in a suit against a sick industrial company, including preparation of the judgment, fixing the pronouncement date, and pronouncing judgment in open court. The Court held that, under Order 20 of the Code of Civil Procedure, a reserved judgment is not complete until formally pronounced, so the suit continues to be "proceeded with further" until that stage. Because the Act's non-obstante protection prevails over the Code, the Court upheld the stay and held that pronouncement could not occur without permission.

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Issues: Whether, after arguments have been heard and judgment reserved in a suit against a sick industrial company, Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 bars the Court from pronouncing judgment and taking the steps necessary for such pronouncement.

Analysis: The expression "proceeded with further" in Section 22 is of wide import and covers the judicial steps that remain after hearing, including preparation of the judgment, fixing and notifying the date of pronouncement, and pronouncement in open court. The procedural scheme of Order 20 of the Code of Civil Procedure, 1908 shows that a reserved judgment is not yet complete and that the suit continues until judgment is formally pronounced. The non-obstante effect of Section 22, read with Section 32 of the Act, prevails over the general obligation under the Code to pronounce judgment after hearing. The distinction suggested between post-hearing pronouncement and other proceedings was held to have no rational basis in the statutory scheme intended to protect a sick company from further litigation.

Conclusion: Section 22 bars the Court from pronouncing the reserved judgment and from further proceeding with the suit unless permission is obtained, so the stay of proceedings was upheld.

Ratio Decidendi: In a suit against a sick industrial company, the statutory bar under Section 22 extends to all remaining judicial steps after hearing, including pronouncement of a reserved judgment, because the suit is still being "proceeded with further" until judgment is formally delivered.

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