The main legal point established in the judgment is that the provisions of the Sick Industrial Companies Act, 1985, prevail over the general provisions of the Companies Act, and the court ordered that the proceedings under the Companies Act shall remain in abeyance till the disposal of the proceedings under the Sick Industrial Companies Act, 1985.

( 1 ) THIS special appeal has been filed against the impugned order of the learned Single Judge dated 12. 3. 2004 in Company Petition No. 1 of 2002 Modi Rubber Limited v. Madura Coats limited. An impleadment application has been filed on behalf of Phillips Carbon Black Limited which we have allowed.

( 2 ) WE have heard the learned counsel for the parties and have perused the record.

( 3 ) THE facts of the case are given in some detail in the impugned order dated 12 3. 2004 It appears that a bunch of creditors petitions were filed in this Court praying for winding up of M/s Modi rubber Limited on the ground that the said company is unable to pay its huge debts. On 13. 3. 2002 the Court passed an order giving its prima facie finding that the respondent company was unable to pay its debts and injuncted the respondent company from dealing with or encumbering any of its assets without seeking prior permission of the Court. Thereafter by order dated 17. 5. 2002 it was held by the Court that there was a liability of Rs. 3,22,91,636/- admitted by M/s Modi Rubber Limited. On 21. 5. 2002 the Court again recorded a finding that the company was unable to pay its debts. Hence the petition was admitted and a direction was given to issue an advertisement under Rule 24 of the Rules.

( 4 ) ON 9. 7. 2002 while granting the said company liberty to furnish a payment schedule for repayment of its admitted dues to its creditors the Court recorded a finding that the application of the company did not make a complete and truthful disclosure of the financial arrangements proposed with the banks and financial institutions, and hence two weeks time was granted to make complete and truthful disclosure of the financial status of the company as it obtained on 30. 6. 2002 alongwith the proposals submitted to the financial institutions. This disclosure was not made and hence on 23. 7. 2002 one week further time was granted to the company as a last opportunity to comply with the order dated 9. 7. 2002 with the rider that if the order was not complied with the prayer for appointment of a provisional liquidator would be considered.

( 5 ) AGAIN on 4. 3. 2003 adjournment was sought by the company with the request that its arrangement with Appolo Tyres Limited could not be finalized because of the death of Sri raunak Singh, the Managing Director of Appolo Tyres Limited. It was also stated that apart from negotiations with Appolo Tyres Limited negotiations were going on with some German company also.

( 6 ) WHILE observing that this was a dilatory tactics on frivolous excuses this Court again granted a last opportunity and fixed the case for 10. 3. 2003. Again on 11. 3. 2003 the case was adjourned to 3. 4. 2003 requiring the company to place on record the progress in the negotiations. Thereafter several dates were fixed but till the date of the order there was no complete proposal or arrangement suggested by M/s Modi Rubber Limited.

( 7 ) ON 12. 3. 2004 learned counsel for M/s Modi Rubber Limited again sought an adjournment on the ground that an agreement is likely to be signed between M/s Modi Rubber Limited and appolo Tyres Limited. Hence it was prayed that the Court should postpone and defer the winding up petitions of several creditors of M/s Modi Rubber Limited which had been pending for the past more than two years for decision.

( 8 ) BY the impugned order the learned Single Judge recorded a finding that the company is unable to pay its debts. The Courts reason for postponement of these proceedings earlier was due to a faint hope that by the process of negotiations some buyer of M/s Modi Rubber Limited may come forward who may revive the company thereby saving the jobs of the workers. This hope was belied repeatedly and nothing concrete appeared during the period of two years. Affidavits of financial institutions like IFCI, IDBI, UTI, Insurance Companies, etc. have been filed which did not bring out anything of substance and did not hold out any f