M/S Madras Petrochem Ltd.& Anr vs Bifr & Ors

The Supreme Court addressed the conflict between the Sick Industrial Companies (Special Provisions) Act, 1985 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It held that the provisions of the Sick Industrial Companies Act do not override the rights of secured creditors under the Securitisation Act, particularly in cases where a company has been declared sick and rehabilitation efforts have failed. The Court upheld the winding up of the appellant company as recommended by the BIFR, affirming the dismissal of the writ petition challenging the AAIFR and BIFR orders.