|Bombay High Court
SICA Rehabilitation Failure | Contractual Pendente Lite Interest Prioritized Over Principal: Bombay HC
After a SICA rehabilitation scheme collapses, creditors may claim pendente lite interest from the date of suit filing at the contractual rate, with all recoveries first applied to interest before principal. This clarifies the repayment hierarchy for banks and financial institutions pursuing legacy debt recovery under the now-repealed SICA framework, reinforcing contractual rights in insolvency aftermaths.