Bijli Cotton Mill (Unit Of National ... vs U.P. Power Corporation Limited & Ors

The Supreme Court held that the late payment surcharge demanded by U.P. Corporation Ltd. from the National Textile Corporation U.P. Limited (NTC) was not covered under the approved scheme by the Board for Industrial and Financial Reconstruction (BIFR) as per Section 5.04 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The Court found that the High Court's reliance on the precedent in M/s L.M.L. Ltd. was misplaced, as that case dealt with a different context regarding energy charges. The appeal was allowed, quashing the recovery proceedings against NTC for the late payment surcharge.