• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Legal Correspondent

Advertisement

Chennai Feb. 20 If a company is referred to the Board for Industrial and Financial Reconstruction (BIFR), creditors cannot go to court to recover dues, right? Wrong, says Madras High Court.

Section 22 of Sick Industrial Companies (Special Provisions) Act, 1985, which bars a lender from going to court against a sick company for recovering dues, would cease to operate because of the amendment to Section 41 of the SARFAESI Act.

The First Bench, comprising Chief Justice Mr A.P. Shah and Mr Justice K. Chandru, said this while deciding on a writ petition of Golden Weaving Mills Pvt Ltd, Madurai. The company had challenged a notice of Tamilnadu Industrial Investment Corporation (TIIC) for recovery of dues of Rs 1.56 crore.

The argument of the petitioners that TIIC could not proceed under the SARFAESI Act was "clearly misconceived and could not be accepted", the Bench said.

More Stories on : Sick Units | Courts/Legal Issues

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HLL to become Hindustan Unilever

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line