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2011 (3) TMI 1486 - HC - Companies LawWhether a Public Sector Enterprise/Undertaking having dues outstanding in respect of a commercial transaction from a sick company within the meaning of the Sick Industrial Companies (Special Provisions) Act, 1985 ('the SICA') falls within the definition of "other authority" for purposes of section 19(1) of the SICA and is entitled to the benefit of sub-section (2) of section 19 of the SICA of circulation of the scheme and entitlement to obtain its consent? Held that:- Respondent No. 1 is not entitled to be covered within the definition of "other authority" within the meaning of section 19(1) of the SICA nor can the unpaid price be categorized as financial assistance by way of loans, advances or guarantees or reliefs or concessions or sacrifices and thus is not entitled to the notice under section 19(2) of the SICA. Respondent No. 1 is, thus, liable to be treated as an 'unsecured creditor', as has been done by the BIFR, and in view of the scheme which has been duly approved in accordance with law the entitlement is restricted to 10 per cent of the principal amount being in the category of an unsecured creditor. We may notice that it was pointed out to us that the petitioner has not paid even that amount but then learned counsel for the petitioner pointed out that the said amount had to be paid at certain stages and the instalment of the same has been brought to the Court by learned counsel for the petitioner. Appeal allowed.
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