BIJLI COTTON MILL vs U.P. POWER CORPN. LTD. .

The Supreme Court held that the late payment surcharge demanded from the appellant under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) is not covered under the interest and damage provisions of the approved scheme by the Board for Industrial and Financial Reconstruction (BIFR). The Court found that the High Court's reliance on the precedent in M/s L.M.L. Ltd. was misplaced, as that case pertained to a different context regarding energy charges. The appeal was allowed, quashing the recovery proceedings against the appellant for the late payment surcharge.