Supreme Court of India · 2008-08-25

KSL & INDUSTRIES LTD. vs M/S. ARIHANT THREADS LTD. .

Citation / case number: SC 2006/6152
Court: Supreme Court of India
Petitioner: KSL & INDUSTRIES LTD.
Respondent: M/S. ARIHANT THREADS LTD. .
Author: C.K. THAKKER
Bench: CHIEF JUSTICE,S.A. BOBDE,ABHAY MANOHAR SAPRE

Judgment text excerpt

The Supreme Court upheld the High Court's decision that Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 bars recovery proceedings against a company declared sick. The Court emphasized that the provisions of SICA must be adhered to, preventing creditors from initiating recovery actions while the company is under the purview of the Act. Consequently, the appeal by KSL & Industries Ltd. was dismissed, affirming the High Court's ruling.