TMI Blog1997 (4) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Supreme Court and the petitioner has failed in the Supreme Court and, therefore, the bank guarantee has become enforceable. 2.The contention raised by the petitioner is that since the petitioner is a sick company and there is a scheme sanctioned under the Sick Industrial Companies (Special Provisions) Act, 1985, the coercive recovery of excise duty cannot be made except with the permissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the pendency of the appeal, the department was made to deposit the amount and the petitioner-company was permitted to have that amount on furnishing the bank guarantee. In the High Court, the excise authorities had succeeded and the petitioner had carried the matter to the Supreme Court and it is stated that, under the orders of the Supreme Court, the bank guarantee has been continued. Now the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank is separate from that of the petitioner-company and the liability of the bank cannot be said to have been stayed merely because the debtor company is a sick unit and is protected under the umbrella of Section 22 of the Act. 6.Under clause (xiv) of the scheme, until the Excise Department waives the claim, that liability is very much alive and enforceable and the enforcement of bank guar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Section 18(8) of the SICA, which reads as follows :- On and from the date of the coming into operation of the"(8) sanctioned scheme or any provision thereof, the scheme or such provision shall be binding on the sick industrial company and the transferee company, or as the case may be, the other company and also on the shareholders, creditors and guarantors and employees of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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