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2008 (1) TMI 617 - HIGH COURT OF BOMBAYCompromise and arrangement - Whether an industrial company which has made a reference under section 15 of the Sick Industrial Companies Act, 1985, can during the pendency of such reference, apply to this court for sanctioning a scheme of arrangement or compromise with its creditors and share holders and whether this court can take cognizance of such an application during the pendency of the reference and pass necessary orders thereon as are permissible in law ? Held that:- Once the industrial company makes a reference under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985, the company court would have no jurisdiction for sanctioning the scheme of arrangement or compromise with its creditors and shareholders and neither will it have jurisdiction to take cognisance of such an application during the pendency of the reference. , In the light of the above we overrule the judgments in National Organic Chemical Industries Ltd. v. NOCIL Employees Union [2005 (6) TMI 280 - HIGH COURT OF BOMBAY], Sharp Industries Ltd., In re [2005 (11) TMI 253 - HIGH COURT OF BOMBAY] and in Pharmaceutical Products of India Ltd., In re [2006 (2) TMI 290 - HIGH COURT OF BOMBAY]. We approve the view taken by the referral judge in the light of what we have discussed. In the light of that company petitions dismissed.
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