Bharucha, J. - (1.) The question in this appeal is whether Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 ('the said Act') covers a suit against the guarantor of a loan or advance that has been granted to the concerned industrial company.
(2.) On 31st March, 1999 the first respondent filed a suit inter alia against the first appellant to recover the amounts of the loans that had been given to the latter. To the said suit were impleaded the guarantors (including the second appellant) and the guarantees were sought to be enforced. A Notice of Motion was taken out in the suit for ad interim relief, which was granted on 1st April, 1999.
(3.) On 8th April, 1999 the reference made by the first appellant to be declared a sick undertaking within the meaning of the said Act was registered.;