SRINIVASAN, J.

The respondent has entered a caveat through counsel and with the consent of learned counsel on both sides, the appeal is taken up for final hearing. The appellants instituted a proceeding under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "the Act") before the BIFR to declare itself as a sick industrial company. That proceeding was dismissed on March 17, 1994, on the footing that the first appellant was not an industrial company. The respondent filed C. S. No. 410 of 1994, in the original side of this court for recovery of a sum of Rs. 11, 83, 813.11 with subsequent interest. The suit was based on hire purchase agreements, between the respondent and the appellants dated May 28, 1990, and later dates. Pending the suit, the respondent filed an application in O. A. No. 2307 of 1994, for seizure and sale of the machinery which is the subject-matter of the hire purchase agreement. An order was passed on September 17, 1994, after contest, in favour of the respondent by the judge on the original side. That order was not challenged by the appellant by an appeal.

The appellant, however, filed an appeal against the order of