Section 22 SICA protection is limited to the sick company and covered guarantors, not directors or officers.

Section 22 of SICA was construed narrowly as a stay provision protecting the sick industrial company, its properties, and covered guarantors, but not its directors or officers. The Court held that directors and officers cannot be treated as guarantors merely because they control or manage the company, since the company remains a separate legal person. The statutory bar was applied strictly and not extended by implication to recovery proceedings, investigation, or criminal action against directors and officers. Protection under section 22 was therefore unavailable to them.

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Issues: Whether the protection under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 extends only to the sick industrial company and its properties, or also protects the company's directors and officers from recovery proceedings, investigation, and criminal action.

Analysis: Section 22 was held to have a limited scope and to operate only against the industrial company and its properties, with protection also available to guarantors in appropriate cases. The Court held that directors and officers cannot be equated with guarantors merely because they manage or control the company, since the company is a separate legal person distinct from them. The statutory bar was construed strictly and was not extended beyond the cases expressly covered by the provision. The decision of the Supreme Court relied upon by the petitioner was distinguished on the ground that it concerned a guarantor acting in that capacity, whereas the proceedings in the present case were directed against the directors and officers as such.

Conclusion: The protection under section 22 is not available to the directors and officers of the petitioner-company, and proceedings against them are not barred.

Ratio Decidendi: The statutory protection under section 22 of SICA is confined to the sick industrial company, its properties, and covered guarantors, and cannot be extended to directors or officers by implication.

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