IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.SASIDHARAN NAMBIAR TUESDAY, THE 29TH JULY 2008 / 7TH SRAVANA 1930 WP(C).No. 22771 of 2008(J) -------------------------- AGAINST THE ORDER IN EP.128/2002 IN OS.236/1999 of SUB COURT, PALAKKAD .................... PETITIONER: ------------ M/S.UTILITY ALLOYS PRIVATE LIMITED, REPRESENTED BY ITS AUTHORISED SIGNATORY, 10/247, MARUTHACODE, AKATHETHARA, PALAKKAD DISTRICT. BY ADV. SRI.V.CHITAMBARESH (SR.) SRI.T.C.SURESH MENON SRI.JIBU P THOMAS SRI.P.S.APPU RESPONDENTS: ------------- M/S.STEEL COMPLEX LIMITED, REPRESENTED BY ITS MANAGING DIRECTOR, HAVING ITS REGISTERED OFFICE AT WISCO MANNNER, FEROKE, KOZHIKODE DISTRICT. BY THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: M.SASIDHARAN NAMBIAR, J. ------------------------------- W.P.(C) No.22771 of 2008 ------------------------------- Dated this the 29th July, 2008. J U D G M E N T Petitioner is the judgment debtor and respondent the decree holder in E.P.No.128 of 2002 in O.S.No.236 of 1999, on the file of Sub Court, Palakkad. A decree for realisation of Rs.11,56,406/= with interest at the rate of 18% per annum from 1.10.1996 was passed by Sub Court, Kozhikode, on 12.7.2001. Ext.P2 execution petition was filed before Sub Court, Palakkad, after getting the decree transferred to that court, for sale of the attached property. After the execution petition was posted for sale of the attached property, petitioner filed Ext.P3 counter statement, as well as Ext.P4 petition to stay the execution proceedings. It was contended in the counter as well as in the application for stay that petitioner company was declared a sick company and proceedings is now pending before the Board for Industrial and Financial Reconstruction, (for short 'BIFR') and under Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, (for short 'the Act') execution proceedings is to be stayed. This petition is filed under Article 227 of the Constitution of India for a W.P.(C) No.22771 of 2008 2 direction to the Executing Court to dismiss the execution petition and direct to consider Ext.P4 application for sale and Ext.P5 application for adjournment of sale. The adjournment sought for under Ext.P5 is to adjourn the sale which was posted on 27.6.2008. As the sale was admittedly adjourned, Ext.P5 petition has become infructuous. 2. Petitioner has produced Ext.P6, copy of the order issued by the Appellate Authority for Industrial and Financial Reconstruction, New Delhi, dated 9.5.2008, which shows pendency of an appeal against the order of BIFR dated 21.8.2006. Section 25 of the Act provides that any person aggrieved by an order of the Board made under the Act is entitled to prefer an appeal to the Appellate Authority. Sub-section (1) of Section 22 of the Act provides for suspension of legal proceedings, where in respect of an industrial company, an enquiry 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. 3. In such circumstances, Sub Judge, Palakkad, is directed to pass appropriate orders, on Ext.P4 petition, as W.P.(C) No.22771 of 2008 3 expeditiously as possible, at any rate, within three weeks from the date of receipt of a copy of this judgment. Executing Court shall adjourn the sale till the disposal of the petition. The writ petition is disposed as above. M.SASIDHARAN NAMBIAR, JUDGE nj.