KANORIA INDUSTRIES LTD. vs STATE OF KARNATAKA .

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 noted that the appellant, declared a sick company under the Sick Industries (Special Provisions) Act, 1985, was protected from coercive recovery actions as per Section 22 of the Act. However, the Court allowed the Government of Karnataka to recover dues in accordance with a rehabilitation scheme approved by the Board for Industrial and Financial Reconstruction, emphasizing compliance with the scheme's terms.