https://www.taxtmi.com/caselaws?id=111565 A pending BIFR reference does not protect guarantors or mortgaged collateral from recovery action under the securitisation law, because the statutory stay under section 22 of the Sick Industrial Companies Act applies to the sick company itself and not to third-party guarantors or their security. The later amendment to section 15 also indicates that a pending reference abates once secured creditors take measures under section 13(4) of the 2002 Act. The proviso to section 19(1) of the 1993 Act is enabling, not mandatory, so a secured creditor need not withdraw its recovery application before invoking the securitisation remedy. The notice-based recovery measures were therefore upheld. en-us Mon, 01 May 2006 00:00:00 +0530 Tue, 24 Apr 2012 11:19:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111565 A pending BIFR reference does not protect guarantors or mortgaged collateral from recovery action under the securitisation law, because the statutory stay under section 22 of the Sick Industrial Companies Act applies to the sick company itself and not to third-party guarantors or their security. The later amendment to section 15 also indicates that a pending reference abates once secured creditors take measures under section 13(4) of the 2002 Act. The proviso to section 19(1) of the 1993 Act is enabling, not mandatory, so a secured creditor need not withdraw its recovery application before invoking the securitisation remedy. The notice-based recovery measures were therefore upheld. Case-Laws Companies Law Mon, 01 May 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111565