TMI Blog2005 (1) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner for a declaration that the initiation of recovery proceedings against it for recovery of damages is illegal. Suit was originally decreed and the same was confirmed by the Appellate Court. In S.A. No. 281 of 1978 judgment was set aside and the Trial Court was directed to consider the matter afresh. Suit was then dismissed. State took up the matter in appeal, A.S. No. 154 of 1981. Appellate Court set aside the judgment and later the suit was decreed as prayed for. Writ petitioner then took up the matter in second appeal, S.A. No. 1029 of 1989 which was dismissed and the decree has become final. 3. Counsel appearing for the appellant Sri Antony Dominic contended that the State is not entitled to recover the amount since the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Dy. CTO v. Corromandel Pharmaceuticals AIR 1997 SC 2027, that the bar applies only to such of those dues reckoned or included in sanctioned Scheme for rehabilitation. Appellant has not produced any document or material to show that such amount has been included in the Scheme for rehabilitation. 5. We are of the view, the mere fact that an enquiry is pending is no reason to hold that State cannot initiate proceedings for the recovery of the decree debt. The contention raised by the counsel for the petitioner was pointedly considered by the Apex Court in Corromandel Pharmaceuticals case ( supra ) and held as follows: On a fair reading of the provisions contained in Chapter III of Act 1986 and in particular sections 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he steps for recovery of the amounts or other coercive proceedings are taken against sick industrial company which, during the relevant time, acts under the guidance/control or supervision of the Board (BIFR). Any step for execution, distress or the like against the properties of the industrial company or other similar steps should not be pursued which will cause delay or impediment in the implementation of the sanctioned scheme. In order to safeguard such state of affairs an embargo or bar is placed under section 22 of the Act against any step for execution, distress or the like or other similar proceedings against the company without the consent of the Board, or, as the case may be, the Appel- late Authority. The language of section 22 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enquiry is going on for revival of the unit by itself will not absolve the liability of the company. Only the liability or amounts covered by the scheme would be taken in by section 22. Section 22(1) could apply only to such of those dues reckoned or included in the sanctioned Scheme. Such amounts like sales tax etc. which the sick industrial company is enabled to collect after the date of the sanctioned Scheme legitimately belonging to the Revenue cannot be and could not have been intended to be covered within section 22 of the Act. The bar under section 22 therefore would apply only to such dues reckoned or included in the sanctioned Scheme for rehabilitation. 6. We may incidentally point out that the Sick Industrial Companies (Speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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