Sick company reference bars winding up proceedings until Board approval or completion of proceedings under the special statute.

Once a reference is registered under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the bar in Section 22(1) prevents a winding up proceeding from being entertained or proceeded with unless the Board or Appellate Authority grants sanction. In the absence of such permission, the petition could not be maintained at that stage. The text also notes that Section 22(5) suspends limitation during the pendency of proceedings before the Board or Appellate Authority.

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Issues: Whether a winding up petition can be entertained or proceeded with after registration of a reference before the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985.

Analysis: Once a reference is registered under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the bar in Section 22(1) operates and no winding up proceeding shall lie or be proceeded with, unless the Board or the Appellate Authority grants sanction. The petitioner had not obtained such permission, and therefore the winding up petition could not be maintained at that stage. The statutory consequence under Section 22(5) is that limitation remains suspended during the pendency of proceedings before the Board or the Appellate Authority.

Conclusion: The winding up petition was not maintainable at that stage and was dismissed, with liberty to seek permission from the Board or await conclusion of the proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985.

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