Independent meaning of distress under sick company stay provisions limits recovery action for revenue dues

Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 was discussed as a stay provision covering winding up, execution, distress and similar proceedings against an industrial company's properties while an inquiry, scheme or appeal is pending. The text treats "distress" as independently operative and not controlled by the neighbouring words "execution or the like", so recovery action for excise revenue is not automatically outside the statutory protection merely because it seeks revenue collection. In the cited matter, the existing orders were described as well reasoned and supported by the record, and the challenge was rejected.

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Issues: Whether Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 stayed distress proceedings initiated for recovery of excise revenue against a sick industrial company.

Analysis: Section 22(1) stays specified proceedings such as winding up, execution, distress or the like against the properties of an industrial company when an inquiry, scheme, or appeal under the Act is pending. The word "distress" was held to be separately placed and independently operative, not confined by the words surrounding execution or the like. On that reading, distress for recovery of revenue was not excluded from the statutory protection merely because it related to excise dues. The matter had already been considered by the BIFR, the AAIFR, and the Single Judge, whose orders were found to be well reasoned and supported by the record.

Conclusion: Section 22(1) did not bar the impugned distress proceedings in the manner contended by the appellant, and the appeals failed.

Final Conclusion: The challenge to the Single Judge's orders was rejected, leaving the protection under Section 22(1) unavailable on the appellant's construction of the term "distress" in this context.

Ratio Decidendi: Under Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the term "distress" is to be given independent effect and is not controlled by the immediately surrounding expressions, so the statutory stay does not automatically extend to every recovery measure merely because it is initiated for revenue collection.

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