2014 (4) TMI 906

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....Advocates, for the Respondent. JUDGMENT Leave granted. 2. We are, in this case, concerned with the question whether the appellants who are Directors and Guarantors of a sick company and are entitled to get the protection of Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short "the SICA"). 3. M/s. Rajat Pharmachem Pvt. Ltd. (RPL) was engaged in the ....

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....f action in DRT. Future interest @ 18% per annum was also sought. RPL apprehending institution of recovery proceedings took steps seeking registration of its reference under Section 15 of the SICA. Later Board for Industrial and Financial Reconstruction (BIFR) intimated its registration and accorded Case No. 14 of 2009. 4. The Bank instituted Original Application OA No. 118 of 2009 in DRT on....

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....ourt wherein the correctness of the two orders passed by the DRAT on 29-8-2011 in OA No. 118 of 2009 and the orders dated 30-5-2011 and 3-5-2010 passed by the DRT were examined. 5. The primary issue that came for consideration before the High Court was whether the protection under Section 22(1) of SICA can be extended to the appellants in their capacity as guarantors of debt owned by RPL. Th....

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....on of law raised in this appeal since, as rightly pointed out by the High Court, the same stands covered by various Judgments of this Court referred to earlier. Appellants, who are the guarantors, can obtain the protection of Section 22(1) of SICA only if the action filed by the bank comes within the ambit of the term 'suit'. If the action filed by the respondent bank in the nature of 'proceedings....