M/S Anita International vs Tungabadra Sugar Works Maz.Sangh & Ors

The Supreme Court addressed the conflict between the winding-up proceedings of Deve Sugars Ltd. and the recovery actions initiated by the State Bank of Mysore under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The Court held that the High Court's order granting leave to the bank to proceed with recovery was conditional upon the involvement of the Official Liquidator and the prohibition of coercive actions against the company's assets. The Court emphasized the need to respect the winding-up process while allowing the bank to recover its dues, thereby balancing creditor rights and the liquidation process.