Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2008 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (8) TMI 574 - HIGH COURT OF ALLAHABADPreventing the recovery of the amounts of sugar cane by coercive method will - Held that:- Where an industrial company continues its activities in spite of a reference pending before the BIFR and as seen in the instant case, the liabilities are incurred subsequent to the cut-off date, those liabilities will have to be honoured by the concerned industrial company. These liabilities will not become a part of the scheme or of the package of rehabilitation. Sugar cane is being purchased as a raw material subsequent to the cut-off date, the price there for will have to be paid. If workers are engaged to work in the factory subsequent to this cut-off date, obviously their wages will have to be paid. There cannot be an escape therefrom on the ground of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. The prayer for preventing the recovery of the amounts of sugar cane by coercive method will, therefore, has to be rejected. W.P. dismissed.
|