Section 22 SICA bar does not cover dishonoured bill discounting claims against the drawer.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 did not bar a suit on dishonoured bills of exchange where the transaction was bill discounting and the discounted proceeds were paid to the drawer. The drawer remained liable under section 30 of the Negotiable Instruments Act, 1881, and section 37 did not extend the statutory bar to the drawer's post-acceptance position. Protection under section 22 applies to enforcement of a guarantee in respect of a loan or advance granted to a sick industrial company, and no such loan or advance was shown here. The claim against the drawer was therefore maintainable.

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Issues: Whether the bar under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 applied to a suit against the drawer of bills of exchange where the proceeds of the discounted bills were paid to the drawer and not to the sick industrial company.

Analysis: The drawer of a bill of exchange remains liable under section 30 of the Negotiable Instruments Act, 1881 on dishonour, and section 37 does not make the drawer's post-acceptance position a basis for extending the statutory bar under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. The protection under section 22 is attracted where the suit is for enforcement of a guarantee in respect of a loan or advance granted to an industrial company against which the relevant proceedings are pending. On the facts, the transaction was bill discounting, the amounts were paid to the drawer, and no loan or advance was granted to the industrial company.

Conclusion: Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 did not bar the suit, and the drawer was liable to satisfy the claim.

Ratio Decidendi: The statutory bar under section 22 applies only to proceedings for enforcement of a guarantee in respect of a loan or advance granted to a sick industrial company, and does not extend to liability arising from dishonoured bills of exchange discounted in favour of the drawer.

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