Kanoria Industries Ltd vs State Of Karnataka & Ors

The Supreme Court upheld the Karnataka High Court's dismissal of the appellant's writ petition challenging a demand notice under Section 9 of the Karnataka Tax on Entry of Goods Act, 1979. The Court recognized the appellant's status as a sick company under the Sick Industries (Special Provisions) Act, 1985, specifically Section 22, which protects it from coercive recovery actions. The Court allowed the Government of Karnataka to recover dues as per the approved rehabilitation scheme, emphasizing compliance with the scheme's terms.