In Brief
Madras Petrochem Ltd, a sick industrial company under BIFR protection, had pending rehabilitation references when secured creditors (led by ICICI) initiated recovery proceedings under the Securitisation Act 2002 to enforce security. The Court held that the Securitisation Act 2002 prevails over the Sick Industrial Companies Act 1985 because the former's non obstante clause is broader and SICA is not expressly saved under Section 37. The term 'pending reference' encompasses all BIFR proceedings, not merely the filing stage. A stay order does not revive disposed references. Where 75% of secured creditors by value enforce security under the Securitisation Act, any SICA reference abates. The Court dismissed the appeal, confirming that secured creditors may proceed with recovery despite SICA protection, reflecting policy prioritization of debt recovery over rehabilitation of defunct companies.
The lawyer headnote and full judgment text are available to registered users.