TMI Blog2003 (4) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... ered as 93/93 dated 7-12-1993. On such registration, BIFR after due enquiry, appointed Industrial Finance Corporation of India (IFCI) as the operating agency on 7-3-1994 for preparation of the scheme for rehabilitation of the first respondent-Company. Due to the loss sustained by the appellant-company to a tune of Rs. 30,99,009.40 for not lifting 800 cotton bales in time by the first respondent under sale contract, it invoked the arbitration clause by appointing the second respondent as sole Arbitrator. Questioning the said appointment, the first respondent-company moved this Court by filing WP No. 8925/1994 contending that once the company is declared as sick industrial unit under the provisions of SICA, and BIFR appointed IFCI as the oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cles of association of the industrial company or any other instrument having effect under the said Act or other law, no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof (and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company) shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the appellate authority." (2)** ** ** (3) Where an inquiry under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or other authority or of any submission, settlement or standing order and accordingly, ( a )any remedy for the enforcement of any right, privilege, obligation and liability suspended or modified by such declaration, and all proceedings relating thereto pending before any Court, Tribunal, Officer or other authority shall remain stayed or be continued subject to such declaration; and ( b )on the declaration ceasing to have effect ( i )any right, privilege, obligation, or liability so remaining suspended or modified, shall become revised and enforceable as if the declaration has never been made; and ( ii )any proceeding so remaining stayed shall be proceeded with subject to the provisions of any law which may then be in force, fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SICA. If the Board is satisfied it may suspend the operation of the "awards". The only difference between the provisions under sections 22(1) and 22(3) is that while in the former case the proceedings of the suit of the nature mentioned in sub-section (1) shall not lie or be proceeded with except with the consent of the Board, in the latter case, Board has to declare the suspension of such contracts, settlements, awards etc. Since awards are mentioned in sub-section (3) of section 22 of the SICA that is another reason to infer that the Legislature did not intend such awards to be covered by the expression "suits for recovery of money". Accordingly, it was held that the arbitration proceedings pending under sections 14 and 17 of the Arbitrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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