Section 22 recovery protection raises Article 14 concerns for guarantors, with further hearing directed.

Guarantors challenging recovery sought protection under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, and the Court recorded a prima facie concern that the provision may operate discriminatorily by staying recoveries against companies while similar protection is unavailable to poorer borrowers, raising an Article 14 issue. No final ruling was given on the constitutional challenge or on the recovery claim. The Union of India was directed to be impleaded, and the matter was listed for further hearing after exchange of affidavits.

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Issues: Whether the petitioners, as guarantors challenging recovery, could claim protection under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, and whether a prima facie constitutional issue arose under Article 14 of the Constitution of India.

Analysis: The order records a prima facie view that the protection available under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 operates in a discriminatory manner by staying recovery against companies while recoveries against poorer borrowers may proceed without similar protection. On that basis, the constitutionality of the provision was questioned under Article 14. The Union of India was directed to be impleaded and the matter was listed for further hearing with exchange of affidavits.

Outcome: No final adjudication on the constitutional challenge or recovery issue was made; further proceedings were directed after impleadment and filing of affidavits.

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