JAYANT NATH, J.

CM No. 32709/2016 (exemption)

Allowed subject to all exceptions.

CM (M) 884/2016 and CM No. 32708/2016 (stay)

1. By the present petition, the petitioner seeks to impugn the order dated 21.07.2016 by which an application filed by the petitioner/defendant under Order 7 Rule 11 CPC was dismissed.

2. The contention of the petitioner is that the respondent has filed a suit for recovery of Rs.5,95,390/-. The petitioner filed the application under Order 7 Rule 11 CPC stating that the defendant/petitioner company has a pending enquiry under BIFR and a reference has been made vide letter dated 19.10.2014 and that the reference has been approved and a case has been registered as Case No. 53/2014. On the basis of this averment, it was stated that the plaint be rejected.

3. The impugned order of the trial court rejected the application giving several reasons. It was firstly stated that as per the third proviso to Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 where the specified number of secured creditors take measures for recovery of their secured debt under Section 13(4) of The Securitisation and Reconstruction of Financial Assets and Enfor