1997 (1) TMI 535

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....d also complied with the formalities for the supply of electricity in terms of Indian Electricity Act, 1910. The petitioner claimed the rebate on the basis that he had established the industry in an undeveloped area but we are not concerned with that controversy. Admittedly, a sum of Rs. 49395 lacs was due from the petitioner. On a demand raised by the Board on June 4, 1996 in that behalf, the petitioner approached the High Court. The petitioner, with a view to avoid disconnection had agreed with the Board on June 10,1996 for payment of above outstanding amount in 12 monthly instalments and the Board had agreed for the same and given re-connection subject to the petitioner paying the amount as agreed. The petitioner after depositing one ins....

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....that since the matter was pending before the BIFR itself. It is seen that Section 22(1) of the sick Industrial Companies (Special provisions ) Act, 1985 envisages as under: "22. Suspension of legal proceedings, contract, etc.--(1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relation to an industrial company is pending, then, notwithstanding anything contained in the companies Act, 1956 (q of 1956), or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said act or other law, ....

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....hout its permission is prohibited. Enforcement or compliance of the obligation under the contract or regulation for supply of electrical energy by ordering payment of electrical energy is not and cannot be considered to be execution of decree. Execution of the decree presupposes existence of a decree of a competent Court and the decree- holder should take steps to have it executed pending proceeding before or leaf BIFR. There is no decree of court. since the petitioner had committed default and as a condition for re-connection, agreed to pay the amount in instalments, he is liable to comply with the undertaking given for supply of electrical energy. the petitioner committed default in that behalf. so, it is not entitled to seek any declarat....