https://www.taxtmi.com/caselaws?id=108522 Section 29 of the State Financial Corporations Act, 1951 extends to property mortgaged by a surety or guarantor, even where that property does not belong to the borrowing industrial concern, so the Financial Corporation may proceed against such collateral security for recovery on default. The amended section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not bar section 29 action against guarantors during pendency of sickness proceedings, because the statutory bar is directed to suits and related recovery claims and does not convert section 29 enforcement into a prohibited proceeding. Recovery against the guarantors' mortgaged properties was therefore legally permissible. en-us Mon, 24 Mar 2003 00:00:00 +0530 Mon, 02 Apr 2012 10:27:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108522 Section 29 of the State Financial Corporations Act, 1951 extends to property mortgaged by a surety or guarantor, even where that property does not belong to the borrowing industrial concern, so the Financial Corporation may proceed against such collateral security for recovery on default. The amended section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not bar section 29 action against guarantors during pendency of sickness proceedings, because the statutory bar is directed to suits and related recovery claims and does not convert section 29 enforcement into a prohibited proceeding. Recovery against the guarantors' mortgaged properties was therefore legally permissible. Case-Laws Companies Law Mon, 24 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108522