2003 (3) TMI 548

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....ver can be appointed in respect of leased properties which are presently in the possession of a company which has invoked the Sick Industrial Companies (Special Provision) Act, 1985. 2. Counsel for the respondent has relied on a decision of a learned Single Judge of this Court in Arun Kapur v. Vikram Kapur 95 [2002] DLT 42. In paragraph 56 of that decision the learned Judge has opined that "if the party invokes preliminary alternative remedy before the Arbitral Tribunal, it is debarred from invoking the jurisdiction of the Court under section 9 of the Act. Ordinarily if the Arbitrator is seized if the matter the interim relief should not be entertained and the parties should be advised to approach the Arbitrator for interim relief unless a....

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....s case (supra) may not be correct. In any event the learned Judge has really done no more than express the salutory practice of not rushing to Court where relief from an alternate Forum is conveniently available. The learned Judge does not in terms state that the Court cannot exercise the powers given to it by virtue of section 9 of the Act. I am of the view that the Court has powers to pass appropriate orders under section 9 of the Act notwithstanding the pendency of arbitral proceedings. 3. On the second question also the contention of learned Counsel for the respondent does not have merit. It is his submission that there is a dispute pending on the question of who is the owner of leased equipments. It is in very few cases that such defe....

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.... relief by way of any deduction, allowance or grant available to the Lessor as the owner of the product under the Income-tax Act, 1961 or under any other statute, rule, regulation or guideline issued by the Government of India or any statutory authority and not do or omit to do or be done any act, deed or thing whereby the Lessor is deprived, whether wholly or partly, of such relief by way of deduction, allowance or grant. The Lessee shall, at the end of each financial year of the Lessor, provide to the Lessor such information as it may require to claim relief by way of deduction, allowance, or grant, as the owner of the product under the Income-tax Act, 1961 and the Lessee undertakes to comply with and observe, at all times all the terms a....

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.... held that since the Defendant was not paying the instalments it cannot be allowed to continue to use machinery and earn money from it in an unbusiness like manner. In cases where the respondent has already invoked the directions of the Sick Industrial Companies (Special Provision) Act, 1985 it is imperative for the Court to intervene since otherwise not only would the instalments be unrecoverable but there would be a danger of the equipments being damaged or becoming non-functional by careless handling of the lessee/bailee. There may be an exception where the Defendant is legitimately carrying on business and is in a position to honour the decree or orders passed by the Court. This is not so once the Sick Industrial Companies (Special Prov....