SICA protection does not bar tribunal recovery proceedings against guarantors when the action is not a civil suit.

Protection under Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 does not extend to directors or guarantors where recovery is pursued before the Debt Recovery Tribunal. The statutory bar applies only to a "suit" in the civil court sense, and tribunal-based recovery proceedings are not treated as suits for this purpose. As a guarantor's liability is co-extensive with that of the principal debtor, the SICA protection cannot be invoked to block such recovery action. The appellants were therefore not entitled to the benefit of Section 22(1).

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Issues: Whether the protection under Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 extends to directors and guarantors of a sick industrial company in respect of recovery proceedings initiated before the Debt Recovery Tribunal.

Analysis: The entitlement to the statutory bar under Section 22(1) depends on the nature of the proceeding. Recovery proceedings before the Debt Recovery Tribunal are not a "suit" within the meaning of that provision. The liability of a guarantor is co-extensive with that of the principal debtor, and the protective umbrella of SICA cannot be extended to guarantors when the bank's action is not a civil suit. The issue stood covered by earlier decisions which confined the expression "suit" to proceedings in civil court and not to recovery proceedings before a tribunal.

Conclusion: The appellants were not entitled to protection under Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

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