Yes, Recovery Proceedings against the Sick Company could not be stopped:
The Supreme Court of India is set side the order of High Court of Delhi Court by imposing heavey cost of Rs.50,000/- and confirmed the order of the DRAT, by which " recovery proceeding could be effected against the company.
I will post the detail order of the Suprem court later.
Following is the case in which SC passed Judgment:
KSL And Amp; Industries Ltd
M/S Arihant Threads Ltd. And Amp; Ors
on 25 August, 2008