BIFR registration alone does not waive statutory interest liability absent coverage under a sanctioned rehabilitation scheme.

Mere registration of an assessee before the BIFR did not by itself suspend statutory interest liability arising under the Chhattisgarh Vanijyik Kar Adhiniyam, 1994. Protection under section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 applies only to liabilities shown to fall within the statutory stay or an approved rehabilitation scheme. Because the interest demand related to a period before BIFR registration, was not shown to be covered by any sanctioned scheme, and no express waiver was established, the statutory interest could not be treated as waived. The challenge to the demand therefore failed.

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Issues: Whether mere registration of the assessee before the BIFR entitled it to protection from payment of interest levied under Section 26(4)(a) of the Chhattisgarh Vanijyik Kar Adhiniyam, 1994, when the liability had arisen before such registration and was not shown to be covered by any sanctioned BIFR scheme.

Analysis: The interest demand related to a period preceding the assessee's registration with the BIFR. Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 suspends specified proceedings against a sick industrial company, but the protection is not automatic for all liabilities; the liability must be shown to have been covered by a sanctioned scheme or otherwise within the statutory protection. The record did not establish that the interest liability had been included in any approved scheme, nor was there any express waiver of the statutory interest liability. Since the liability under Section 26(4)(a) was statutory in nature, it could not be treated as waived merely because the assessee was registered with the BIFR.

Conclusion: Mere BIFR registration did not exempt the assessee from the interest liability, and the challenge to the demand failed.

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