In Brief
J.K. Synthetics Limited, a sick industrial company, sold its Kota units to Arfat Petrochemicals Pvt. Ltd. under a sanctioned rehabilitation scheme. The BIFR issued orders restraining Arfat from alienating assets, treating it as bound by Section 22 A. The Supreme Court held that Section 22 A applies only to sick companies, not to non-sick purchasers of assets from sick companies. The Court dismissed appeals by labour unions challenging the High Court's judgment but partly allowed J.K. Synthetics' appeal by restoring findings in its favour that had been wrongly overturned without challenge."
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