TaxTMI 
TaxTMI 
2001 (2) TMI 962
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.... in this application is whether the proceedings under section 11 of the Arbitration and Conciliation Act, 1996 ('the 1996 Act') can be stayed on account of the respondent's having been declared as a sick company under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (the SICA) and particularly when the scheme for revival of the company is still pending with the BIFR. 2. ....
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.... 3. It was argued that whatever the nature of the proceedings be in the suit filed on the basis of the award in effect and in substance it is an action for recovery of money against the applicant and, therefore, it is a suit within the meaning of the SICA and, therefore, the proceedings should be stayed. 4. Section 22 contemplates suspension of legal proceedings and contracts etc. and reads as un....
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....of and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans, or advance granted to the industrial company shall lie or be proceeded with further, except with the consent of the Board or, as the' case may be, the appellant authority." Another relevant provision is sub-section (3) of section 22 which is a....
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....efore the said date, shall remain suspended or shall be enforceable with such adaptations and in such manner as may be specified by the Board." It is pertinent to mention here that in Lloyds Insulations (India) Ltd.'s case (supra) it was specifically observed that the question to be determined was whether a suit filed on the basis of the award is the nature of proceedings for recovery of money or....