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2006 (4) TMI 253 - SC - Companies LawDecretal amount should be recovered from the guarantors first and only if there was any deficit,it should be recovered from the company in liquidation - Held that:- The suit was against the company as well as its Directors being guarantors in their personal capacity. The suit could have in any case proceeded against the guarantors. It was stayed by the trial court apparently under section 446(1) even though there was no such prayer to that effect. The only prayer before the Court at the instance of first defendant in the suit for stay of suit under section 22 of SIC Act which was not granted. The object of appellants in filing an application for stay was to drag on the suit. They have succeeded in their effort to stall the suit for more than 16 years on a virtually non-existent ground. The trial court will, therefore, have to proceed with the suit with all expedition. Thus subject to the deletion of the condition imposed by Company Court while granting leave, this appeal is dismissed upholding the grant of leave.
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