Challenging that proceedings, the Company moved the High Court by way of Writ Petition under Article 226 of the Constitution claiming protection provided under Section 22 of the Act.
The first petitioner is the Gram Panchayat, Salwad and second petitioner is the Chairman of the Gram Panchayat.
The Act companyers only sick industrial companypanies or industrial companypa nies which have the potential to become sick.
The petitioners initiated companyrcive proceedings under Section 129 of the Bombay Village Panchayat Act to recover a sum of Rs.9,47,539 stated to be the property tax and other amounts due from the companypany.
The Act empow ers the Central Government to establish a Board to be known as the Board for Industrial Financial Reconstruction to exercise the jurisdiction and powers, and discharge the functions and duties imposed under the Act.
The first respondent company M s Shree Vallabh Glass Works Ltd. has been declared to be a sick industrial companypany within the meaning of clause 0 of sub section 1 of Section 3 of the Act.
From the Judgment and Order dated 18.7.1989 of the Bombay High Court in W.P. No.
It came into force except sections 15 to 34 with effect from 15 May 1987.
CIVIL APPELLATE JURISDICTION Special Leave Petition Civil No.
Sick Industrial Company means an industrial companypany being a companypany registered for number less than seven years which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year.
6108/87 quashing the proceedings for recovery of property tax and other expenses due from the first re spondent company.
14395 of 1989.
N. Ganpule for the Petitioners.
The Judgment of the Court was delivered by JAGANNATHA SHETTY, J. The petitioners seek leave to appeal against the decision of the Bombay High Court in Writ Petition No.
The matter arises in this way For the purpose of pre vention and revival of sick industries, the Central Govern ment has enacted the Act called The Sick Industrial Compa nies Special Provisions Act, 1985 The Act .
The High Court has accepted the writ petition and restrained the petitioners from recovering the said amount without the companysent of the Board.
Chidambram, Mrs. Raian Karaniawala, N.H. Seerbai, Karanjawala and Ravinder Kumar for the Respondents.
The Act extends to the whole of India including the State of Jammu Kashmir.
6108 of 1987.
