Tata Motors Ltd vs Pharmaceutical Products Of India Ltd

The Supreme Court addressed the interpretation of the Sick Industrial Companies (Special Provisions) Act, 1984 (SICA) in relation to the Companies Act, 1956, specifically Section 391. The Court held that the scheme approved by the Company Court must ensure equitable treatment of all creditors, and that selective inclusion of creditors in the scheme is impermissible. The judgment emphasized that the principles of fairness and transparency must govern the approval of schemes under the Companies Act, leading to the conclusion that the scheme presented was flawed and required reconsideration.