Legal Reference Library

The Supreme Court of India in M/s Madura Coats Limited v M/s Modi Rubber Limited has ruled that provisions of Sick Industrial Companies (Special Provisions) Act, 1985 would prevail over the provisions of the companies act. The M/s. Madura Coats Limited was aggrieved by the impugned judgment and order dated 20/05/04 of the Division Bench of the High Court of Allahabad which allowed the Special Appeal of the M/s. Modi Rubber Ltd, staying the proceedings before the Company Court consequent upon a winding up order passed against the respondent .The stay was granted till a final decision was taken on the reference made by respondent to the Board for Industrial and Financial Reconstruction. Dismissing the appeal Justice Madan B Lokur held:”it is quite clear that different situations can arise in the process of winding up a company under the Companies Act but whatever be the situation, whenever a reference is made to the Board of Industrial and Financial Reconstruction under Sec...

In the matter of M/S MADRAS PETROCHEM LTD. & ANR.  Vs BIFR & ORS., by  a judgment dated 29 Jan 2016, the Hon'ble Supreme Court opined that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 prevails over the Sick Industrial Companies (Special Provisions) Act, 1985 to the extent of inconsistency therewith. The judgment has given in the context of a rather convoluted matter wherein petitions and appeals have been filed before several High Courts, DRTs and DRAT, primarily due to the difference in the opinion of various courts of law on primacy of several important Acts having Non Obstante clauses. The Hon'ble court in a 32 page judgement, the court stated that the following two questions which arise on the facts of this case::- (1) Whether the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 prevails over the Sick Industrial Companies (Special Provisions) Act, 1...

Page 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL No. 5225 OF 2008 KSL & INDUSTRIES LTD. …. APPELLANT VERSUS M/S ARIHANT THREADS LTD. & ORS. …. RESPONDENTS JUDGMENT S. A. BOBDE, J. 1. This appeal is placed before us by way of a reference, made by a two-Judge Bench of this Court, C.K. Thakker and Altamas Kabir, JJ. which heard the matter on an earlier occasion and held that the appeal deserves to be allowed and that the Judgment and Order passed by the High Court is liable to be set aside. In view of a difference of opinion having arisen on the interpretation of Section 34 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as the 1 Page 2 `RDDB' Act) the matter has been referred for decision to this Bench by the Hon’ble Chief Justice of India. 2. The present appeal is preferred by KSL & Industries Ltd. (`appellant' for short) against the final Judgment an...