BIFR status does not defeat a subsisting court direction to pay interest where the order was made with that status in view.

A company's objection to paying interest on the ground that it was before the BIFR and that the claim should be governed by the scheme under the relevant Act was rejected. The earlier court order directing payment of interest was treated as having been made with the company's BIFR status in view, so the subsisting direction remained binding. The company was therefore required to comply with the earlier order to pay interest, and the application for a direction to pay interest was allowed.

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Issues: Whether the company could resist the application for payment of interest on the ground that it was before the BIFR and that the claim should be governed by the scheme under the said Act.

Analysis: The objection was rejected because, when the earlier order directing payment of interest was made, the company was already before the BIFR. The subsisting order of the Court was treated as having been made with that in view, and the company was bound to comply with the direction to pay interest as earlier ordered.

Conclusion: The objection failed and the application for direction to pay interest was allowed.

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