AIR 1997 SUPREME COURT 2027 ::1997 AIR SCW 1816 ::1997 (3) ADSC 713 ::1997 (2) Com LJ 164 SC ::(1997) 43 KantLJ(Trib) 540 ::(1997) BankJ 554 ::(1997) 25 CorLA 10 ::1997 (10) SCC 649 ::(1997) 2 Scale 640 ::(1997) 89 ComCas 1 ::1997 (3) All WC 1421 ::1997 STI 146 ::(1997) 2 SCR 1026 (SC) ::1997 (2) SCR 1026 ::1997 (2) UPTC 813 ::(1997) 4 Supreme 259 ::(1997) 138 Taxation 172 ::(1997) 3 JT 660 (SC) ::1997 (3) JT 660

Supreme Court Of India

(From: Andhra Pradesh)*

Hon'ble Judge(s): B. P. Jeevan Reddy, K. S. Paripoornan , JJ

Sick Industrial Companies (Special Provisions) Act (1 of 1986) , S.22— Suspension of legal proceedings in respect of dues against sick company - Bar applies only to such of those dues reckoned or included in sanctioned scheme for rehabilitation - Recovery of sales tax dues - Proceedings are not barred. W. P. No. 21973 of 1995, D/- 4-11-1995 (Andh. Pra), Reversed. The language of Section 22 is certainly wide. But, in the totality of the circumstances the safe-guard is only against the impediment that is likely to be caused in the implementation of the scheme. If that be so, only the liability or amounts covered by the scheme will be taken in, by Section 22. So, though the language of Section 22 is of wide import regarding suspension of legal proceedings from the moment an inquiry is started, till after the implementation of the scheme or the disposal of an appeal under section 25 it will be reasonable to hold that the bar or embargo envisaged in Section 22(1) can 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. Any other construction will be unreasonable and unfa....