K.GOVINDARAJAN
Messrs. Standard Metal Industries through its Prop. C. S. Kumaravel and another – Appellant
Versus
Indian Overseas Bank, Allapuram Branch, N. A. A. District and another – Respondent
The defendants who failed in their attempt to stay the suit OS. No.523 of 1989 on the file of the Sub Court, Vellore (I.A. No.38 of 1996) have filed the above revision petition. The plaintiff filed the above suit against the defendants seeking a decree for a sum of Rs.38,669 with future interest at the rate of 10% p.a. until payment in full. It is not in dispute that the first defendant is the proprietary concern. Unfortunately, the petitioners/ defendants filed a petition under Sec.22 of the Sick Industrial Companies (Special, Provisions) Act, 1985 (hereinafter called “the Act”) to stay all further proceedings in the suit till the proceedings under the said Act by the Department are over. According to the petitioners, the first defendant has to be declared as a sick industry and they have initiated the proceedings for a declaration that the first defendant- company as a sick industry as per the provisions of the Act. So, on that basis the petitioners want to suspend the legal proceedings. The trial court after considering the issues raised before it, rejected the petition, as the same cannot be sustained. Aggrieved against the same, the above revision petition is filed.
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