Arijit Pasayat, J. - (1.) Leave granted.
(2.) Challenge in this appeal is to the judgment rendered by a Division Bench of the Allahabad High Court. The appellant-a unit of National Textile Corporation U.P. Limited (in short NTC) had moved the High Court for quashing the recovery proceedings. Further prayer was for direction to the respondents not to demand and/or recover any amount from the appellant.
(3.) Background facts as projected by the appellant are as follows: The appellant-unit was involved in the manufacture of cotton yarn. The production in the unit stopped in the year 1992. Out of the 11 units which had become sick, nine could not be revived and only two could be revived. The appellant referred the matter of sickness of the Mill to the BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 (in short SICA). The electricity connection of the Mill was disconnected. A bill dated 15.11.2003 for a sum of Rs. 33,52,251.18 towards principal and a sum of Rs.54,50,326.07 towards late payment surcharge (totalling to Rs.88,02,577.25) was raised.;