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ARTICLE · 05 AUGUST 2016

SICA To Prevail Over The RDDB Act

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The Hon'ble Supreme Court of India while putting at rest a controversial issue has held that the revival of a sick company will take precedence over recovery proceedings.

IndiaFinance and Banking
Shweta Vashist
Shweta Vashist
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The Hon'ble Supreme Court of India while putting at rest a controversial issue has held that the revival of a sick company will take precedence over recovery proceedings. A three-judge bench, headed by Justice HL Dattu and comprising of Justice SA Bobde and Justice Abhay Manohar pronounced that the provisions of SICA in particular Section 22, shall prevail over the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB).

The appeal was placed before the three judges bench by a reference made by a two judge bench , whereby Justice Thakker and Justice Altamas Kabir had a difference of opinion regarding the interpretation of Section 34 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

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