INDIAN MAIZE & CHEMICALS LTD vs STATE OF UP

The Supreme Court upheld the Allahabad High Court's decision regarding the U.P. State Electricity Board's demand for payment of dues under the Indian Electricity Act, 1910. The Court clarified that the provisions of Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 do not provide an automatic stay on payment obligations when a company is undergoing rehabilitation. The Court modified the High Court's order to allow payment in instalments, emphasizing that the issue of default was not previously addressed in the cited case law.