N.K. Jain, J.

1. This petition by the Union of India is directed against the Order dated 28-4-1998, passed by the Appellate Authority for Industrial and Financial Reconstruction, New Delhi, dismissing appeal of the petitioner against the Order passed by the B. I. F. R. rejecting their application for permission to sell the material detained by the Order of detention passed Under Rule 230 of the Central Excise Rules.

2. During the pendency of this petition, the B I F R has passed final Order Under Section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985, declaring the respondent No. 3 - Company, as Sick Unit (vide Annexure R-3/1). Section 22 of the Act of 1985 has in such a situation, the effect of suspension of every legal proceeding commenced or pending for recovery of any dues against the sick company. Since the respondent-Company has been declared Sick by the B.I.F.R., any action taken by the petitioner - Department for recovery of the dues against the Company stands suspended and now recoveries can be made only in accordance with the Scheme which may be framed by the operating agency to be appointed and controlled by the Board. In view of this, this petitio