https://www.taxtmi.com/caselaws?id=108146 Section 22(1) of SICA protects a sick industrial company from specified coercive proceedings, but it does not suspend a bank's independent obligation under an irrevocable letter of credit. Where the beneficiary presents conforming documents, the bank must honour the credit because its liability arises from its own undertaking and is separate from the underlying transaction. The existence of SICA proceedings or possible recovery difficulty does not justify non-payment. The ordinary limits on interference with letters of credit therefore apply, and the bank cannot invoke SICA to resist liability under a compliant credit. en-us Mon, 21 Apr 2003 00:00:00 +0530 Fri, 30 Mar 2012 12:53:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108146 Section 22(1) of SICA protects a sick industrial company from specified coercive proceedings, but it does not suspend a bank's independent obligation under an irrevocable letter of credit. Where the beneficiary presents conforming documents, the bank must honour the credit because its liability arises from its own undertaking and is separate from the underlying transaction. The existence of SICA proceedings or possible recovery difficulty does not justify non-payment. The ordinary limits on interference with letters of credit therefore apply, and the bank cannot invoke SICA to resist liability under a compliant credit. Case-Laws Companies Law Mon, 21 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108146