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        Insolvency and Bankruptcy

        2019 (3) TMI 2017 - AT - Insolvency and Bankruptcy

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        Repealed SICA proceedings and withdrawn SLPs: non-maintainability stands, while a reserved writ remedy may be revived. Proceedings abated under the repealed SICA regime are governed by the amended consequential provision in section 4(b) of the Sick Industrial Companies ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Repealed SICA proceedings and withdrawn SLPs: non-maintainability stands, while a reserved writ remedy may be revived.

                            Proceedings abated under the repealed SICA regime are governed by the amended consequential provision in section 4(b) of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003, and the article notes that this supported the view that the Adjudicating Authority's finding of non-maintainability should not be interfered with in light of Spartek Ceramics. It also states that a special leave petition dismissed as withdrawn is non-binding and does not prevent revival of an earlier writ petition before the High Court where liberty to amend was reserved within the time granted.




                            Issues: Whether the application before the Adjudicating Authority was maintainable after abatement under the Sick Industrial Companies (Special Provisions) Repeal Act, 2003, and whether the appellant could seek relief before the High Court in view of the withdrawn special leave petition.

                            Analysis: The amended consequential provision under section 4(b) of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 was treated as governing the effect of pending proceedings, and the impugned order of the Adjudicating Authority holding the appellant's petition not maintainable was not found to call for interference in light of the binding effect of the Supreme Court's decision in Spartek Ceramics. At the same time, the dismissal of the special leave petition as withdrawn was treated as non-binding, and the earlier writ petition was held to stand revived before the High Court with liberty to seek amendment within the time granted.

                            Conclusion: The appeal was not entertained on merits against the finding of non-maintainability, while the appellant was left to pursue the revived writ remedy before the High Court.

                            Ratio Decidendi: A proceeding abated under the repealed SICA regime is governed by the amended consequential provision, and a withdrawn special leave petition does not preclude the revival of an available writ remedy where liberty has been reserved.


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                            ActsIncome Tax
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