INDUSTRIAL INVESTMENT BANK OF INDIA LTD. vs M/S. JAIN CABLES PVT. LTD. .

The Supreme Court addressed the applicability of Section 40 of the Industrial Reconstruction Bank of India Act, 1984, in the context of the repealing provisions of the Industrial Reconstruction Bank (Transfer of Undertaking and Repeal) Act, 1997. The Court upheld the Rajasthan High Court's ruling that Section 40 was purely procedural and not saved by the repeal, thus rendering the application filed by the Industrial Investment Bank of India Limited (IIBIL) under this section non-maintainable. The Court confirmed that the rights and liabilities of the borrower company were preserved, but the procedural provisions of Section 40 were not applicable post-repeal, leading to the dismissal of the appeal.