TMI Blog1990 (3) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... pany for the recovery of their dues/outstandings/overdues or arrears by whatever name they are called. The Board, as its discretion, may accord its approval for proceeding against the company. If the approval is not granted, the remedy is not extinguished. It is only postponed. Sub-section (5) of section 22 provides for exclusion of the period during which the remedy is suspended while computing the period of limitation for recovering the dues. - Special Leave Petition (Civil) No. 14395 of 1989, W.P. No. 6108 of 1987 - - - Dated:- 15-3-1990 - JAGANNATHA SHETTY K. AND SAHAI R.M. JJ. P. Chidambaram, Senior Advocate (Mrs. and Mr. Raian Karanjawala, N.H. Seerbai and Ravider Kumar, Advocates, with him), for the respondents. V.N. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to or exceeding its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year. The first petitioner is the Gram Panchayat, Salwad, and the second petitioner is the chairman of the gram panchayat. The petitioners initiated coercive proceedings under section 129 of the Bombay Village Panchayats Act to recover a sum of ₹ 9,47,539 stated to be the property tax and other amounts due from the company. Challenging those proceedings, the company moved the High Court by way of a writ petition under article 226 of the Constitution claiming the protection provided under section 22 of the Act. The High Court has accepted the writ petition and restrained the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat, in case the enquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration by the Board or any appeal under section 25 is pending, then certain proceedings against the sick industrial company are to be suspended or presumed to be suspended. The nature of the proceedings which are automatically suspended are: (1) winding up of the industrial company, (2) proceedings for execution, distress or the like against the properties of sick industrial company and (3) proceedings for the appointment of a receiver. The proceedings in respect of these matters could, however, be continued against the sick industrial company with the consent or approval of the Board or of the appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, to be taken. Accordingly, in exercise of the powers conferred under section 17(3) of the Act, the Board appointed the ICICI as its operating agency to prepare a scheme for rehabilitation/revival of the company keeping in view the provisions of sections 18 and 19 and the guidelines. At the same time, the Board appointed Shri Y.V. Sivaramakrishnayya as the special director of the company for safeguarding its financial and other interests. In the light of the steps taken by the Board under sections 16 and 17 of the Act, no proceedings for execution, distress or the like proceedings against any of the properties of the company shall lie or be proceeded further except with the consent of the Board. Indeed, there would be automati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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