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2008 (8) TMI 566 - HIGH COURT OF BOMBAYWinding up - petitioners claimed unpaid price of goods sold and supplied during the period from September, 2006 to May, 2007 - whether respondent entitled to protection under sections 22 and 21(a) of the Sick Industrial Companies (Special Provisions) Act, 1985? Held that:- In the present case, the respondent-company is not entitled to invoke the protection of section 22 in respect of transactions for purchase of goods after the reference was registered with the BIFR on 15-12-2005. Indeed, section 22 cannot be used as a shield against the recovery of debts such as unpaid price of goods, particularly, when the goods have been purchased after the reference has been registered since such transactions and the debts incurred thereon are outside the provisions which culminate in a scheme. Thus where a company has consciously entered into transactions, created liabilities and incurred debts whether an enquiry is pending or whether the scheme has been framed under the SICA, the bar under section 22 would not apply. There is, thus, no merit in this contention.
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