Syndicate Bank vs New Look Rubbers (P) Ltd & Ors

The Supreme Court held that the provisions of Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, do not provide an automatic stay on execution proceedings unless the company is declared sick by the Board for Industrial and Financial Reconstruction. The Court emphasized that the execution of a decree cannot be obstructed by mere claims of sickness without proper declaration. The appeal was dismissed, affirming the lower court's decision to allow the execution of the decree against the judgment-debtors.