https://www.taxtmi.com/caselaws?id=108295 Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 was read broadly to cover not only guarantees for loans or advances but also bank guarantees given for amounts payable by a sick company to a beneficiary. On that approach, invocation of the guarantee for recovery of money arising from supply of goods was treated as raising a substantial issue on maintainability, and that issue was considered a triable defence sufficient to justify leave to defend. The separate ground based on Government undertaking clearance was not pressed. The stated effect was that section 22(1) applied to the guarantee in question and unconditional leave to defend was available. en-us Thu, 28 Aug 2003 00:00:00 +0530 Fri, 30 Mar 2012 18:07:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108295 Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 was read broadly to cover not only guarantees for loans or advances but also bank guarantees given for amounts payable by a sick company to a beneficiary. On that approach, invocation of the guarantee for recovery of money arising from supply of goods was treated as raising a substantial issue on maintainability, and that issue was considered a triable defence sufficient to justify leave to defend. The separate ground based on Government undertaking clearance was not pressed. The stated effect was that section 22(1) applied to the guarantee in question and unconditional leave to defend was available. Case-Laws Companies Law Thu, 28 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108295