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2014 (4) TMI 906 - SC - Companies LawProtection u/s 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 - 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 - Held that:- 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’ and not a ‘suit’, protection under Section 22(1) would not be available, especially, when the appellants are guarantors - term ‘suit’ have to be confined in the context of sub-section (1) of Section 22 of SICA to those actions which are dealt with under the Code and not in the comprehensive over-arching proceedings so as to apply to any original proceedings before any legal forum. The term ‘suit’ would apply only to proceedings in civil court and not actions or recovery proceedings filed by banks and financial institutions before a Tribunal such as DRT - Decided against appellant.
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