M.D.,Bhoruka Textiles Limited vs M/S Kashmiri Rice Industries

The Supreme Court held that Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 ousts the jurisdiction of Civil Courts in matters concerning sick industries, provided a final order has been passed by the Board of Industrial and Financial Reconstruction (BIFR). The Court found that the trial court erred in determining that the transaction occurred after the reference to BIFR, as the supply of paddy husk was made prior to the reference. Consequently, the appeal was allowed, and the suit was deemed not maintainable under the Act.