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SICA Act

Law School
bhavani 7 Jan 2013, 09:54

One of my clients have filed a money suit.During the pendency of the suit the defendant has moved the BIFR at New Delhi. Should the suit be automatically stayed under Sec 22of SICA Act. I rely on a judgement in Chamundi Mopeds case that in case of Land lord and Tenant relationship , Sec 22 shall not apply .Any case laws on the above subject

1 Reply

anitha.gutti 7 Jan 2013, 16:07

madam, it is true that once an application is made before BIFR, till its investigation for the revival of the industrial undertaking is finally determined, every such action against company or is guarantors for recovery of money or enforcement of security should be frozen unless expresly permied by the specified authoriy of BIFR. This is the immunity provided to the sick company under section 22 of SICA

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