STANDARD MOTOR PRODUCTS OF INDIA LTD. vs M.MOHAN RAO

THE Order passed by the District Forum in this case was manifestly without jurisdiction inasmuch as the petitioner company had been declared a ''sick Industrial Undertaking'' and an order was passed by the Board of Industrial and Financial Reconstruction (B.I.F.R.) keeping in abeyance the operation of all contracts entered into by the company and barring the enforcement of any claims against the company until the question of rehabilitation was finally disposed of by the Board was in force when the complaint was decided by the District Forum. It is submitted before us by the Counsel appearing for the complainant that the said order of the B.I.F.R. has been extended from time to time and is still currently in force.

THE question whether during the currency in force of such an order passed by the B.I.F.R. the Consumer Forum can proceed to pass orders for recovery of amounts from the sick Industrial Undertaking has been considered by us in Standard Motor Products of India Ltd. v. Dr. S. Jayakumar (R.P. No. 489 of 1992) decided on 18.5.1993 reported in I (1994) CPJ 169. In the light of the dictum laid down therein it is manifest that the Order passed by the District Forum in this case cannot be sustained. The State Commission ought to have set aside the said order, if not in appeal, at least in the exercise of its suo motu revisional power. The Orders of the State Commission and the District Forum are accordingly set aside and the complaint petition is hereby dismissed. It will be open to the Complainant to revive his claim as against the Company by instituting a fresh complaint after the order passed by the B.I.F.R. has ceased to be in force. The Revision Petition is allowed as above. There will be no order as to costs.