Fertilizer Corporation Of India Ltd. vs M/S. Coromandal Sacks Private Limited

The Supreme Court addressed the applicability of Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, determining that the suspension of legal proceedings does extend to civil suits for recovery of money, even if the debt has not been admitted by the sick industrial company. The Court held that a decree in favor of the original plaintiff cannot be deemed coram non-judice under these circumstances. Additionally, the Court upheld the High Court's decision to grant 24% compound interest on the principal decretal amount, affirming the legal principles surrounding interest in commercial transactions.