https://www.taxtmi.com/caselaws?id=45300 Enforcement of a bank guarantee furnished pursuant to a court order was held not to be barred by Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. The liability of the bank under the guarantee was treated as distinct from the company's liability, so recovery against the bank was not a direct coercive action against the sick company. The sanctioned scheme also did not extinguish the excise duty claim; it only contemplated possible waiver, and the claim remained enforceable until waiver was actually granted. Section 18(8) made the scheme binding, but did not by itself render the guarantee unenforceable. en-us Fri, 11 Apr 1997 00:00:00 +0530 Fri, 09 Jul 2010 16:52:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=45300 Enforcement of a bank guarantee furnished pursuant to a court order was held not to be barred by Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. The liability of the bank under the guarantee was treated as distinct from the company's liability, so recovery against the bank was not a direct coercive action against the sick company. The sanctioned scheme also did not extinguish the excise duty claim; it only contemplated possible waiver, and the claim remained enforceable until waiver was actually granted. Section 18(8) made the scheme binding, but did not by itself render the guarantee unenforceable. Case-Laws Central Excise Fri, 11 Apr 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=45300