https://www.taxtmi.com/caselaws?id=435442 A sanctioned rehabilitation scheme under the Sick Industrial Companies (Special Provisions) Act, 1985 binds all creditors, including unsecured creditors, because Section 18 authorises collective financial reconstruction and Section 18(8) makes the scheme binding on the sick company, shareholders, creditors, guarantors and employees. An unsecured creditor cannot treat the scheme as optional or wait to recover the full debt after revival, as that would undermine the statutory restructuring process and the revival of the sick company. Section 32 gives the scheme overriding effect, and the reduction of dues under the scheme is by authority of law, so the Article 300A objection fails. The creditor must accept the scaled down value of its dues. en-us Fri, 17 Mar 2023 00:00:00 +0530 Mon, 20 Mar 2023 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435442 A sanctioned rehabilitation scheme under the Sick Industrial Companies (Special Provisions) Act, 1985 binds all creditors, including unsecured creditors, because Section 18 authorises collective financial reconstruction and Section 18(8) makes the scheme binding on the sick company, shareholders, creditors, guarantors and employees. An unsecured creditor cannot treat the scheme as optional or wait to recover the full debt after revival, as that would undermine the statutory restructuring process and the revival of the sick company. Section 32 gives the scheme overriding effect, and the reduction of dues under the scheme is by authority of law, so the Article 300A objection fails. The creditor must accept the scaled down value of its dues. Case-Laws Indian Laws Fri, 17 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435442