2005 (1) TMI 411

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....it was instituted by the writ petitioner for a declaration that the initiation of recovery proceedings against it for recovery of damages is illegal. Suit was originally decreed and the same was confirmed by the Appellate Court. In S.A. No. 281 of 1978 judgment was set aside and the Trial Court was directed to consider the matter afresh. Suit was then dismissed. State took up the matter in appeal, A.S. No. 154 of 1981. Appellate Court set aside the judgment and later the suit was decreed as prayed for. Writ petitioner then took up the matter in second appeal, S.A. No. 1029 of 1989 which was dismissed and the decree has become final. 3. Counsel appearing for the appellant Sri Antony Dominic contended that the State is not entitled to reco....

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....decision of the Apex Court in Dy. CTO v. Corromandel Pharmaceuticals AIR 1997 SC 2027, that the bar applies only to such of those dues reckoned or included in sanctioned Scheme for rehabilitation. Appellant has not produced any document or material to show that such amount has been included in the Scheme for rehabilitation. 5. We are of the view, the mere fact that an enquiry is pending is no reason to hold that State cannot initiate proceedings for the recovery of the decree debt. The contention raised by the counsel for the petitioner was pointedly considered by the Apex Court in Corromandel Pharmaceuticals' case (supra) and held as follows: "On a fair reading of the provisions contained in Chapter III of Act 1986 and in particular ....

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....a say when the steps for recovery of the amounts or other coercive proceedings are taken against sick industrial company which, during the relevant time, acts under the guidance/control or supervision of the Board (BIFR). Any step for execution, distress or the like against the properties of the industrial company or other similar steps should not be pursued which will cause delay or impediment in the implementation of the sanctioned scheme. In order to safeguard such state of affairs an embargo or bar is placed under section 22 of the Act against any step for execution, distress or the like or other similar proceedings against the company without the consent of the Board, or, as the case may be, the Appel- late Authority. The language of s....