Ksl & Industries Ltd vs M/S. Arihant Threads Ltd. & Ors

The Supreme Court ruled that under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), no recovery proceedings can be initiated against a company that has been declared sick, thereby upholding the High Court's decision to set aside the Debt Recovery Appellate Tribunal's order. The Court emphasized that the provisions of SICA provide a protective umbrella for companies undergoing rehabilitation, preventing creditors from taking recovery actions during this period. Consequently, the appeal by KSL & Industries Ltd. was dismissed, affirming the High Court's judgment.