Recovery suit simplicitor not barred by Section 22 where it does not affect sick company assets or rehabilitation scheme.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 bars proceedings that operate like execution, distress, or similar interference with a sick company's assets or rehabilitation scheme. An ordinary suit for recovery of money simplicitor does not, by itself, fall within that category. Where no relief is sought that would disturb assets or affect rehabilitation, the statutory bar is not attracted and prior BIFR permission is unnecessary.

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Issues: Whether a suit for recovery of money simplicitor against a sick industrial company is barred by Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 and requires prior permission of the BIFR.

Analysis: Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 applies to proceedings such as execution, distress or analogous proceedings that may affect the formulation, finalisation, or implementation of a rehabilitation scheme. A simple suit for recovery of money does not, by itself, fall within that class of proceedings. Where no relief is pressed that may lead to liquidation or disturbance of the company's assets, the statutory bar is not attracted and prior permission of the BIFR is unnecessary.

Conclusion: A recovery suit simplicitor is not barred by Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, and no prior permission of the BIFR was required.

Ratio Decidendi: The bar under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 applies only to proceedings having the nature and effect of execution, distress, or similar interference with a sick company's assets or rehabilitation scheme, and not to an ordinary suit for recovery of money.

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