https://www.taxtmi.com/caselaws?id=111366 Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 did not bar enforcement of a bank guarantee issued for payment of goods supplied to a sick industrial company, because the guarantee secured a commercial supply transaction and not a loan or advance to the company; the suit on the independent contract against the bank was therefore maintainable. The recoverable amount was then limited by the guarantee terms, which capped the bank's liability at Rs. 50,00,000 inclusive of interest and fixed interest at one per cent above the borrowing rate subject to that ceiling. Relief was granted within the contractual limit. en-us Tue, 14 Nov 2006 00:00:00 +0530 Mon, 23 Apr 2012 12:15:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111366 Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 did not bar enforcement of a bank guarantee issued for payment of goods supplied to a sick industrial company, because the guarantee secured a commercial supply transaction and not a loan or advance to the company; the suit on the independent contract against the bank was therefore maintainable. The recoverable amount was then limited by the guarantee terms, which capped the bank's liability at Rs. 50,00,000 inclusive of interest and fixed interest at one per cent above the borrowing rate subject to that ceiling. Relief was granted within the contractual limit. Case-Laws Companies Law Tue, 14 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111366