Ksl & Industries Ltd vs M/S. Arihant Threads Ltd. & Ors

The Supreme Court addressed the interpretation of Section 34 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act) in the context of recovery proceedings against a company under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The Court held that the bar under Section 22 of SICA does not prevent the initiation of recovery proceedings under the RDDB Act, thereby setting aside the High Court's order that had favored the company. The appeal by KSL & Industries Ltd. was allowed, affirming the Debt Recovery Tribunal's authority to proceed with recovery actions despite the company's claims.