JUDGMENT

S.C. AGRAWAL, J.:- These appeals filed by M/s.Shree Chamundi Mopeds Ltd. raise questions involving the interpretation of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, hereinafter referred to as the Act.

2. The appellant is a public limited company registered under the Companies Act, 1956. It was set up with the object of manufacturing mopeds in collaboration with Cycle Peugot of France. It has set up a factory at Hirahalli in Tumkur district of Karnataka State. The appellant company has taken on rent the premises belonging to the Church of South Indian Trust Association, respondent No. 1 in these appeals, in Bangalore on a monthly rent of Rs. 21,159/-. The appellant company committed default in payment of rent and as on March 31, 1987 a sum of Rs. 2,45,534/- was payable as rent to the respondents. The respondents issued a legal notice dated 1st April, 1987 calling upon the appellant company to pay the said amount. The appellant company while admitting the liability to pay the aforesaid sum stated that it was expecting certain sums of money towards developmental loan from the Government of Karnataka and as soon as the same was received it would c