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, particularly Section 391. The Court held that the scheme approved by the Bombay High Court, which favored selective creditors, was not in compliance with the statutory provisions requiring equitable treatment of all creditors. Consequently, the Court set aside the High Court's order and directed a reconsideration of the scheme to ensure fair treatment of all stakeholders involved.