SCA/82/7508 1/4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 8275 of 2008 For Approval and Signature: HONOURABLE MR.JUSTICE M.R. SHAH ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= VANAJA TEXTILES LTD & 1 - Petitioner(s) Versus DINESHKUMAR KARSANDAS GANDECHA - Respondent(s) ========================================================= Appearance : MR ASHISH M DAGLI for Petitioner(s) : 1 - 2. NOTICE SERVED for Respondent(s) : 1, MR RC KAKKAD for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE M.R. SHAH Date : 18/12/2008 ORAL JUDGMENT 1. Rule. Shri R. C Kakkad, learned advocate waives SCA/82/7508 2/4 JUDGMENT service of notice of rule on behalf of respondent-original plaintiff. With the consent of the learned advocates appearing on behalf of the respective parties, the matter is taken up for final hearing today. 2. By way of this petition under Article 227 of the Constitution of India, the petitioners- original defendants have prayed for appropriate writ, order and/or direction quashing and setting aside the impugned order dated 14.11.2007 passed by the learned Additional Senior Civil Judge, Junagadh below application Exh. 16 in Special Civil Suit No. 13 of 2007, by which the learned trial Court dismissed the said application submitted by the petitioners-original defendants to stay the further proceedings of the suit on the ground that the petitioners-original defendants are declared as sick unit under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. 3. It is not in dispute that vide order dated 13.06.2006 passed by the Board of Industrial and SCA/82/7508 3/4 JUDGMENT Financial Reconstruction(BIFR), petitioners- original defendants unit has been declared as sick unit. Under the circumstances and considering Section 22 of the SICA, the further proceedings of Special Civil Suit No. 13 of 2007 which is for recovery of the amount against the petitioner-Company requires to be stayed. It is true that the order passed by the Board of Industrial and Financial Reconstruction(BIFR) was not placed before the trial Court when the impugned order was passed, however, considering the fact that the aforesaid order is not disputed, the present order is passed and the further proceedings of the aforesaid suit are required to be stayed. 4. For the reasons stated above, petition succeeds. The impugned order dated 14.11.2007 passed by the learned Additional Senior Civil Judge, Junagadh below application Exh. 16 in Special Civil Suit No. 13 of 2007 is hereby quashed and set aside and further proceedings of Special Civil Suit No. 13 of 2007 are hereby stayed till SCA/82/7508 4/4 JUDGMENT the petitioners-original defendants are continued to be sick unit under the SICA. When there is a change in the circumstances, it will be open for the respondents-original plaintiffs to submit an appropriate application for proceedings further with the suit, which is to be considered by the learned trial Court. Rule is made absolute. There shall be no order as to costs. (M.R.SHAH, J.) niru*