( 1 ) THE Respondent has filed the aboveapplication under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 as amended, read with Section 151 CPC.

( 2 ) THE Arbitrator had passed the award in favour of the Lloyd Insulations (India ) Pvt. Ltd. against the Cement Corporation of India Ltd. The Cement Corporation of India had filed objections against the award. Now the Cement Corporation of India had filed the above application. According to the Respondent/applicant the Company has been referred to the Board of Industrial and Financial Reconstruction (BIFR) under Section 15 of the Act. The same has been registered as Case No. 501/96. According to the Respondent/applicant by virtue of Section 22 of the Act, the proceedings in the suit have to be stayed and can be proceeded only with the consent of the BIFR.

( 3 ) THE Petitioner has filed the reply to the above application staling that the proceedings under the Arbitration Act, 1940 are outside the purview of Section 22 of the Act, The present proceedings are not for recovery of money.

( 4 ) MR. Teneja, learned counsel for the Respondent/applicant submitted that whatever the nature of the proceedings in Suit No. 171-A/95, in effect and in substance it is an action for recovery of money against the Respondent/applicant and therefore, it is a suit within the meaning of the Sick Industrial Companies Act, 1985 and therefore, the proceedings should be stayed. He also submitted that it will be open to the Lloyd Insulations (India) Pvt. Ltd. to move the Board for appropriate orders/directions as contemplated in the Act.

( 5 ) MR. A. S. Chandhiok, learned counsel for the Lloyd Insulations (India) Pvt. Ltd. submitted that a reading of the provision of Section 22 (3) would make the position clear and the present proceedings are outside the ambit of the Act. Section 22 speaks of suspension of legal proceedings and contracts etc. Section 22 (1) reads as under: Where in respect of an industrial company, an inquiry 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, then, notwithstanding anything contained in the Companies Act, 1956 (I of 1956) or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said Act or other law, no proceedings for the winding-up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof (and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans, or advance granted to the industrial company) shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the Appellate Authority. The effect of this provision is that no proceedings can be Filed and be proceeded with except with the consent of the Board against the Sick Company, when an inquiry under Section 16 is pending or any scheme referred to under Section 17 is under preparation or consideration. There is no quarrel with this.

( 6 ) MR. Chandhiok learned counsel for the Lloyd Insulations (India) Pvt. Ltd. would rely upon the language of Section 22 (3 ). Sub section 3 of Section 22 reads as under: Section 22 (3) : Where an inquiry under Section 16 is pending or any scheme referred to in Section 17 is under preparation or during the period of consideration of any scheme under Section 18 or where any such scheme is sanctioned thereunder, for due implementation of the scheme, the Board may be order declare with respect to the sick industrial company concerned that the operation of all or any of the contracts, assurances of property, agreements, settlements, awards, standing o