Supreme Court of India

Modi Rubber Limited v. Continental Carbon India Ltd.

Neutral citation
Reported as [2023] 3 S.C.R. 1026
Bench M. R. Shah and Sudhanshu Dhulia JJ.
Decided 17 March 2023
Status Distinguished

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

1 Supreme Court bench has cited this judgment.

What the Court ordered

In view of the above and for the reasons stated above and quashing and setting aside the judgment and order passed by the High Court of Delhi in the case of Continental Carbon India Ltd. (supra) , Civil Appeal No. 379 of 2017 and Transfer Petition (C) No. 543 of 2016 stands disposed of and consequently the writ petition before the High Court being Writ Petition (C) No. 832 of 2016 stands dismissed.

Judgment, page 43

From the headnote

Sick Industrial Companies (Special Provisions) Act, 1985 – ss.18, 19 – Approval of a scheme by the BIFR under the 1985 Act, unsecured creditor if has the option not to accept the sca led down value of its dues – Held: No – Rehabilitation scheme u/s.18 shall bind all the creditors including the unsecured cred itors and the unsecured creditors have to accept the scaled down value of its dues provided under the rehabilitation scheme – To make the company viable, the concerned persons including the unsecured creditors have to sacrifice to some extent otherwis e the revival efforts shall fail –

Where later benches applied it

Of those, 1 distinguished

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