UCO BANK vs NATIONAL TEXTILE CORPORATION LTD.

The Supreme Court addressed the appeal against the Delhi High Court's judgment which restrained the Arbitral Tribunal from proceeding with the appellant's claim against the National Textile Corporation Ltd. The Court held that the provisions of the Textile Undertakings (Nationalisation) Act, 1995, and the Recovery of Debts Due to Banks Act, 1993, must be interpreted to allow the appellant to pursue its claims through arbitration. The Court overturned the High Court's order, allowing the arbitration to proceed, thereby affirming the appellant's right to seek recovery of the outstanding dues.