2001 (7) TMI 1231

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....ents and accessories. The petitioner submitted its bid. Vide letter dated 16-6-1995 the respondent No. 1 issued an Advance Purchase Order ('APO') of Rs. 1,48,08,660. The petitioner-company sent its acceptance of the said APO by letter dated 5-7-1995 which was accompanied by performance of bank guarantee equivalent to 5 per cent of the value of the APO. Thereafter, Firm Purchase Order ('FPO') dated 3-11-1995 was placed upon the petitioner-company. The petitioner-company alleges that the prices mentioned in the FPO were significantly reduced at which the equipment was to be supplied and this downward revision of the prices amounted to committing fraud upon the petitioner-company by the respondent No. 1. It was not commercially viable to accep....

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....ference before the BIFR. The question is as to whether proceedings in this OMP, which is under section 9 of the Act, are to be suspended and stayed inasmuch as the objection of the respondent No. 1 is that the proceedings in this OMP are not the proceedings in a 'suit' as per section 22 of the SICA, it is, inter alia, proceedings in a 'suit' which are to be stayed. The learned counsel relied upon the judgment of the Supreme Court in the case of Agio Countertrade (P.) Ltd. v. Punjab Iron & Steel Co. Ltd. JT 1999 (10) SC 2481 as well as the Division Bench judgment of this Court in the case of Lloyd Insulations (India) Ltd. v. Cement Corpn. of India Ltd. 2001 II AD (Delhi) 5672. He also relied upon the judgment of the Madhya Pradesh High Court....

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..... for the enforcement....of any guarantee in respect of any loans or advance granted to the industrial company' shall lie without the consent of the Board or the appellate authority. The words are crystal clear. There is no ambigu-ity therein. It must, therefore, be held that no suit for the enforce-ment of a guarantee in respect of a loan or advance granted to the industrial company concerned will lie or can be proceeded with, without the sanction of the Board or the appellate authority under the said Act. 8. It is not possible to read the relevant words in section 22 as meaning that only a suit against the industrial company will not lie without such consent. There is no requirement in section 22, as analysed above, that, to be covered t....