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Issues: Whether the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 prevails over the Sick Industrial Companies (Special Provisions) Act, 1985 so as to bar proceedings before the Industry Facilitation Council against a sick industrial company.
Analysis: The dispute turned on the effect of competing non obstante clauses in two special enactments. The 1993 Act contains an overriding provision in section 10, while the sick-company legislation relies on sections 22 and 32 to protect the rehabilitation process. The Court applied the principle that where two special statutes contain overriding clauses, the later enactment prevails unless the later law indicates a contrary intention. The objects of the two statutes and the Supreme Court's exposition in Solidaire India Ltd. supported the view that prompt recovery of delayed payments under the 1993 Act was intended to operate notwithstanding the earlier sick-company regime.
Conclusion: The 1993 Act prevails over the Sick Industrial Companies (Special Provisions) Act, 1985, and the stay application was rightly rejected.
Ratio Decidendi: When two special statutes with non obstante clauses are in conflict, the later statute prevails and its overriding provision operates according to legislative intent.