https://www.taxtmi.com/caselaws?id=435442 Rehabilitation schemes sanctioned under the Sick Industrial Companies (Special Provisions) Act, 1985 bind unsecured creditors as well as the sick company, shareholders, guarantors and employees. The statutory framework permits financial reconstruction and remedial measures, including scaling down creditor dues, to support collective revival. Unsecured creditors cannot treat a sanctioned scheme as optional or remain outside it to pursue full recovery after rehabilitation, since that would undermine the restructuring process. The scheme has overriding effect, and any reduction in dues operates under statutory authority rather than as an impermissible deprivation of property. 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 Rehabilitation schemes sanctioned under the Sick Industrial Companies (Special Provisions) Act, 1985 bind unsecured creditors as well as the sick company, shareholders, guarantors and employees. The statutory framework permits financial reconstruction and remedial measures, including scaling down creditor dues, to support collective revival. Unsecured creditors cannot treat a sanctioned scheme as optional or remain outside it to pursue full recovery after rehabilitation, since that would undermine the restructuring process. The scheme has overriding effect, and any reduction in dues operates under statutory authority rather than as an impermissible deprivation of property. Case-Laws Indian Laws Fri, 17 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435442