TMI Blog2009 (5) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... ction. It was laid down that a case falling within the former category would make a judgment a nullity. As the appellant has deposited 50 per cent of the decretal amount Civil Court shall transfer the said amount to BIFR. - CIVIL APPEAL NO. 3603 OF 2009 - - - Dated:- 15-5-2009 - S.B. SINHA AND DR. MUKUNDAKAM SHARMA, JJ. R.S. Hegde for the Appellant. Kashi Vishweshwar for the Respondent. JUDGMENT S.B. Sinha, J. - Leave granted. 2. This appeal is directed against a judgment and order dated 29-1-2008 passed by the High Court of Karnataka at Bangalore in RFA No. 982 of 2007 whereby and whereunder judgment and decree dated 21-12-2006 passed by the Civil Judge, Senior Division, decreeing the suit being OS No. 72 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference would not suffice. A finding of fact furthermore was arrived at that the transaction in question being subsequent to the reference, section 22 of the Act would have no application. 4. An appeal preferred thereagainst has been dismissed by the High Court by reason of the impugned order. The High Court, although noticed issue No. 3, did not record any positive finding thereupon. 5. Mr. R.S. Hegde, learned counsel appearing on behalf of the appellant, would urge that the learned Trial Judge as also the High Court committed a serious error insofar as they entered into a wrong finding of fact that the transaction in question is subsequent to the reference. It was furthermore contended that a plain reading of section 22 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides for reference, enquiries and schemes. Section 15 of the Act provides for reference to the Board in terms whereof the Board of Directors of the Company is required to make a reference within 60 days from the date of the duly audited accounts of the company for the financial year as at the end of which the Company has become a sick industrial company. Such reference is made for determination of the measures which may be adopted with respect to the company. The proviso appended thereto, however, entitles the Board of Directors to make a reference within 60 days from the date of formation of the opinion that the Company had become a sick industrial company before the audited accounts of the financial year in question are finalized. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould clearly go to show that a suit is barred when an enquiry under section 16 is pending. It is also not in dispute that prior to institution of the suit, respondent did not obtain consent of the Board. 9. The provisions of the Act and, in particular, Chapter III thereof, provides for a complete code. The Board has a wide power in terms of the provisions of the Act, although it is not a Court. Sub-section (4) of section 20 as also section 32 of the Act provides for non obstante clauses. It envisages speedy disposal of the enquiry and preferably within the time framed provided for thereafter. Section 17 empowers the Court to make suitable orders on the completion of enquiry. Preparation and sanction of the scheme is also contemplated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this nature is limited. (p. 369) If the Civil Court s jurisdiction was ousted in terms of the provisions of section 22 of the Act, any judgment rendered by it would be coram non judis. It is a well-settled principle of law that a judgment and decree passed by a Court or Tribunal lacking inherent jurisdiction would be a nullity. In Kiran Singh v. Chaman Paswan AIR 1954 SC 340, this Court held : . . . It is a fundamental principle well-established that a decree passed by a Court without jurisdiction is a nullity, and that its invalidity could be set up whenever and wherever it is sought to be enforced or relied upon, even at the stage of execution and even in collateral proceedings. A defect of jurisdiction, whether it is pecu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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