Sick company status does not suspend statutory pre-deposit conditions, though extra time for compliance may still be granted.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 was held not to bar the pre-deposit requirement under Section 35F of the Central Excises & Salt Act, 1944, because the pre-deposit is a statutory condition for maintaining an appeal and is distinct from distress, attachment, or execution proceedings. The sick status of the industrial unit therefore did not suspend operation of Section 35F. However, the unit's financial position and its earlier offer of partial deposit were taken into account, and further time of six months for making the pre-deposit was granted.

---

---

Issues: Whether Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 barred the pre-deposit condition under Section 35F of the Central Excises & Salt Act, 1944, and whether the appellant was entitled to modification or further extension of time for making the pre-deposit.

Analysis: Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 protects a sick industrial company against distress, attachment, and sale in execution of orders. The requirement of pre-deposit under Section 35F of the Central Excises & Salt Act, 1944 is part of the statutory condition attached to the right of appeal and is distinct from execution proceedings. The Tribunal therefore held that sickness of the unit did not create a statutory embargo against the operation of Section 35F. At the same time, the financial condition of the unit and the earlier offer of partial deposit were taken into account while considering time for compliance.

Conclusion: The plea that Section 22 barred the pre-deposit requirement was rejected, but further time of six months for making the pre-deposit was granted.

---