TMI Blog2008 (5) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... their liability with the full knowledge, would not only clearly show that there was an undisputed debt, but would also show that, right from the inception, the appellants in fact had no intention of paying the amount for the purchases made by them. The intention of the appellants can be gathered by their subsequent acts, conduct and behaviour of taking a shelter under the provisions of SICA. Hence, the appellants are not entitled to any indulgence of this court under its extraordinary jurisdiction under Article 136 of the Constitution. The appellants had lost their total credibility because of their conduct. When the appellant company was declared sick, then without disclosing this fact the appellants ought not to have made huge purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-4-1997 under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short SICA ) and, therefore, no legal proceedings of recovery of the outstanding amount could be initiated against the appellant company. 4. It may be pertinent to mention that the purchases were made by the appellants from the respondent company after the appellant company was declared sick under the provisions of SICA. The appellants could not dispute the fact that the purchases were made after the appellant company was declared sick under the SICA. The purchases were made holding out clear representation that the goods will be paid for. Ultimately, on non-payment of the outstanding amount, the respondent company initiated criminal pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harge the accused or quash the proceedings at mid-stage, but having regard to the peculiar facts and circumstances of the case, according to the impugned judgment of the High Court, it would not be appropriate to interfere. Consequently, both these petitions filed by the appellants before the High Court were dismissed. 7. The appellants, aggrieved by the impugned order of the High Court, preferred these appeals and submitted that the appellants case is squarely covered by the aforementioned cases of Kusum Ingots Alloys Ltd. ( supra ). 8. We have carefully analyzed the principles of law enunciated in both these cases, along with other cases, cited by Mr. M.L. Verma, learned senior Advocate appearing for the appellant company. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of their conduct. When the appellant company was declared sick, then without disclosing this fact the appellants ought not to have made huge purchases from the respondent company. Ultimately, the appellant company did not pay for the purchases. This clearly indicates that the appellants had no intention of making payment of the purchases made by it. 10. The High Court, in the impugned order, has directed the trial court to dispose of the cases of the appellants as early as possible, but not later than six months from the date of its order. The appellants by approaching this Court have caused avoidable delay in disposal of these cases before the trial court. 11. In the facts and circumstances of the case, we deem it appropriate to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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