TaxTMI 
TaxTMI 
2009 (5) TMI 546
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....eeing the suit being OS No. 728 of 2002 filed by the respondent was affirmed. 3. A partnership firm known as M/s. Kashmiri Rice Industries has its place of business at Hangal. The said firm entered into a contract for supply of paddy husk with the appellant. Inter alia, on the premise that appellant herein, despite supply of the agreed quantity of paddy husk, failed and/or neglected to pay the price therefor, the respondent filed a suit for recovery of a sum of Rs. 2,61,696 in the Court of Civil Judge, Hangal. One of the contentions raised by the appellant in the said suit was that as the appellant-company has become a sick industry within the meaning of the provisions of section 22 of the Sick Industrial Companies (Special Provisions) Ac....
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....he Act would clearly establish that the jurisdiction of the Civil Court is ousted thereby. 6. Mr. Kashi Vishweshwar, learned counsel appearing on behalf of the respondent, however, would support the impugned judgment. 7. Before adverting to the rival contentions of the parties, we may notice the following admitted facts : Supply of husk during the period 17-9-2001 and 28-11-2001, the agreement wherefor was entered into on or about 6-9-2001. Reference to BIFR in terms of section 16 of the Act was made on 27-12-2001. The said reference was registered by the BIFR on 20-3-2002. Respondent filed the suit on 17-12-2002. The learned Trial Judge, therefore, committed a manifest error in opining that the transaction in question was subsequent to ....
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....he Act empowers the Board to make such enquiry as it may deem fit for determining whether any Industrial Company has become a sick industrial company, inter alia, upon receipt of a reference with respect to such company under section 15. Sub-section (1) of section 22 of the Act reads as under : "22. Suspension of legal proceedings, contracts, etc.-(1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relating to an industrial company is pending, then, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law or t....
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....of the Act must be interpreted giving a plain meaning to its contents. An enquiry in terms of section 16 of the Act by the Board is permissible upon receipt of a reference. Thus, reference having been made on 27-12-2001 and the suit having been filed on 17-12-2002, the receipt of a reference must be held to be the starting period for proceeding with the enquiry. The effect of the provisions of the Act has been considered by a three-Judges Bench decision of this Court in Tata Motors Ltd. v. Pharmaceutical Products of India Ltd. [2008] 84 SCL 355 , wherein it, in no uncertain terms, held that SICA is a special statute and, thus, overrides other acts like Companies Act, 1956, stating : "SICA furthermore was enacted to secure the principles sp....