In Brief
GTC Industries Ltd. became a sick industrial company and the Board of Industrial and Financial Reconstruction (BIFR) approved a rehabilitation scheme in 2002 with a rehabilitation period ending 31 March 2011. The company's net worth became positive in 2007 and it was discharged from SICA. When the scheme expired in 2011, the company sought extension citing delay caused by tax department coercive action, but the Board and Appellate Authority rejected this. The High Court dismissed the Revenue's petition seeking recovery, holding the scheme remained operative. The Supreme Court allowed the Revenue's appeal, holding that the scheme had expired and the company was no longer entitled to SICA protection, so tax recovery proceedings could proceed. However, the issue of waiver of interest and penalty was remitted to the Board for clarification.",
The lawyer headnote and full judgment text are available to registered users.