https://www.taxtmi.com/caselaws?id=109430 Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not shield a guarantor from personal recovery proceedings; its bar applies to the industrial company. A rehabilitation scheme does not novate the original loan contract unless the parties clearly substitute it as a new contract under Section 62 of the Indian Contract Act, 1872. Recovery may therefore continue against the guarantor where no pleaded or proved substitution exists. Challenges based on the issuing authority's competence and the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 do not succeed where the applicable statutory framework and notification do not restrict the recovery power invoked. en-us Wed, 01 Oct 2003 00:00:00 +0530 Tue, 10 Apr 2012 11:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109430 Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not shield a guarantor from personal recovery proceedings; its bar applies to the industrial company. A rehabilitation scheme does not novate the original loan contract unless the parties clearly substitute it as a new contract under Section 62 of the Indian Contract Act, 1872. Recovery may therefore continue against the guarantor where no pleaded or proved substitution exists. Challenges based on the issuing authority's competence and the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 do not succeed where the applicable statutory framework and notification do not restrict the recovery power invoked. Case-Laws Companies Law Wed, 01 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109430