M/S. MADURA COATS LTD. vs M/S. MODI RUBBER LTD.

The Supreme Court held that the winding up of a company under the Companies Act can be stayed if a reference is made to the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The Court clarified that the crucial date for the stay of proceedings under Section 22 of SICA is when the reference is registered with the BIFR, not when the application is filed. The appeal by Madura Coats was dismissed, upholding the High Court's decision to stay the winding up proceedings.