{"id":241089,"date":"1999-10-06T00:00:00","date_gmt":"1999-10-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/national-research-development-vs-ms-j-k-b-m-ltd-on-6-october-1999"},"modified":"2017-02-24T00:29:59","modified_gmt":"2017-02-23T18:59:59","slug":"national-research-development-vs-ms-j-k-b-m-ltd-on-6-october-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/national-research-development-vs-ms-j-k-b-m-ltd-on-6-october-1999","title":{"rendered":"National Research Development &#8230; vs M\/S. J.K.B.M. Ltd. on 6 October, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">National Research Development &#8230; vs M\/S. J.K.B.M. Ltd. on 6 October, 1999<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2000 IAD Delhi 90, 82 (1999) DLT 495, 1999 (51) DRJ 676<\/div>\n<div class=\"doc_author\">Author: M Shamim<\/div>\n<div class=\"doc_bench\">Bench: M Shamim<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p> Mohd. Shamim, J. <\/p>\n<p>   IA 4912\/99 in AA 414\/98<\/p>\n<p>   This is an application by the respondent for stay of the proceedings under Section 151 of the CPC on the ground that the respondent company has been registered under the Board for Industrial and Financial Reconstruction vide registration No. 47\/99 dated 11.2.1999. Hence it has been prayed that the proceedings in the present suit be stayed. It is supported by an affidavit. The application has been opposed by the counsel for the plaintiff.\n<\/p>\n<p>2.  I have heard the learned counsel for both the parties at sufficient length and have very carefully examined their rival contentions and have given my anxious thoughts thereto.\n<\/p>\n<p>3.  Section 22 of the Sick Industrial Companies (Special Provisions) Act,<br \/>\n1985 is in the following words :\n<\/p>\n<p>   &#8220;Suspension of legal proceedings, contracts, etc.:-(1) Where in   respect of an industrial company, an inquiry under Section 16 is   pending or any scheme referred to under Section 17 is under   Preparation or consideration or a sanctioned Scheme is under   implementation or where an appeal under Section 25 relating to an   industrial company is pending, then, notwithstanding anything   contained in the Companies Act, 1956 (1 of 1956), or any other   law or the memorandum and articles 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<br \/>\n   any of the properties of the industrial company or for the appointment of a receiver in respect thereof shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority.&#8221;\n<\/p>\n<p>   (2)&#8230;&#8230;&#8230;&#8230;\n<\/p>\n<p>4.  It is manifest from above that the proceedings are liable to be stayed only in those discerning few cases: (a) where in respect of an industrial company an inquiry under Section 16 is pending; or (b) any Scheme referred to under Section 17 is under preparation or a sanctioned Scheme is under implementation; or (c) where an appeal under Section 25 relating to an industrial company is pending.\n<\/p>\n<p>5.  Admittedly, the respondent have so far simply moved an application before the Board for Industrial and Financial Reconstruction and the said application has been registered with them. So there is no inquiry as yet pending under Section 16 of the Sick Industrial Companies (Special Provisions) Act, 1985 nor there is any Scheme referred to under Section 17 under preparation. Similarly there is no appeal pending under Section 25 of the Sick Industrial Companies (Special Provisions) Act, 1985.\n<\/p>\n<p>6.  Hence, there is no question of the stay of the proceedings by this Court. The application is thus pre-mature.\n<\/p>\n<p>7.  There is another aspect of the matter. The petitioner herein have simply prayed through the present petition for an appointment of an Arbitrator. The present proceedings are neither a proceeding for winding up of the industrial company nor it is a proceeding for execution, distress or the like against any of the properties of the industrial company nor the present proceedings are for appointment of a Receiver in respect thereof as envisaged under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. Hence the proceedings in the present case cannot be stayed. I am supported in my above view by the observations of the Supreme Court as  (M\/s Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association, Madras). I do not see any force in the present application. Dismissed.\n<\/p>\n<p>   A.A. No. 414\/98<\/p>\n<p>8.  Learned counsel for the respondent prays for time to file a reply to the above petition. Let the reply be filed within six weeks from today. Rejoinder, if any, be filed within four weeks thereafter.\n<\/p>\n<p>9.  Adjourn and put up on 13th January, 2000.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court National Research Development &#8230; vs M\/S. J.K.B.M. Ltd. on 6 October, 1999 Equivalent citations: 2000 IAD Delhi 90, 82 (1999) DLT 495, 1999 (51) DRJ 676 Author: M Shamim Bench: M Shamim ORDER Mohd. Shamim, J. IA 4912\/99 in AA 414\/98 This is an application by the respondent for stay of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-241089","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>National Research Development ... vs M\/S. J.K.B.M. 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