Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1985 - Sick Industrial Companies (Special Provisions) Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Sick Industrial Companies (Special Provisions) Act, 1985 - ss. 15, 3(e), 3(j) - Board for Industrial and Financial Reconstruction Regulations, 1987 - Regns. 19(5), (4) _:Registration of the Reference under SICA - Scope - Power and jurisdiction of the Registrar and Secretary to refuse registration of the application for reference by the Company - On facts, application for registration of Reference by respondent no. l company - Dismissal of, by Registrar, Secretary and Chairman of the Board, on the ground that respondent no. 1 company was not an industrial company within the meaning of s. 3(e), (j) - Meanwhile, order of winding up of respondent no. 1-Company by the High Court, upheld by the Division Bench - Subsequently, respondent-company challenged the orders of the Secretary and Chairman of the Board rejecting the application for Reference - High Court held that the Registrar and the Secretary and the Chairman of the Board not conferred any power of adjudication and as registration of the Reference was refused on that basis, the said orders non est in law; and that the winding up order passed by the Company Court would not foreclose the proceedings under the SICA, and registration of Reference and inquiry can still be made - On appeal, held: Power to "scrutinize" an application prior to registration thereof and thereafter to register and place the same before the Bench vests in the Registrar or the Secretary of the Board - Power of scrutiny cannot be understood to be vesting in any of the authorities the power to adjudicate the question as to whether a company is an industrial company within the meaning of s. 3(e) read with 3(l) and 3(n) - Rejection of the question could have been made only by a process of adjudication, vested by SICA and the Regulations framed thereunder in a Bench of the Board - High Court was correct in holding that the refusal of registration of the reference sought by the respondent Company byhe Registrar, Secretary/Chairman of the Board was non-est in lmv - Reference must, thus, understood to be pending before the Board on the relevant date attracting the provisions of s. 252 of the Insolvency and Bankruptcy Code - In view thereof the question whether reference before the Board stood foreclosed by the order of winding up of the respondent company and the appointment of the liquidator becomes redundant - Respondent open to seek remedies uls. 252 r!w ss. 13, 14, 20 and 25. |
Judge | Honble Mr. Justice Ranjan Gogoi |
Neutral Citation | 2017 INSC 165 |
Petitioner | Bank Of New York Mellon London Branch |
Respondent | Zenith Infotech Limited |
SCR | [2017] 2 S.C.R. 415 |
Judgement Date | 2017-02-21 |
Case Number | 3055 |
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