M/S Patheje Bros. Forgings & Stamping & ... vs Icici Ltd & Ors

The Supreme Court examined the applicability of Section 22 of The Sick Industrial Companies (Special Provisions) Act, 1985, in the context of a suit against guarantors of loans granted to an industrial company. The Court held that Section 22 does not bar suits against guarantors, as it only applies to proceedings against the industrial company itself. The judgment distinguished the case from Madalsa International Ltd. v. Central Bank of India, emphasizing that the provisions of Section 22 must be interpreted in harmony with other sections of the Act, particularly Section 17(3) and Section 22(A). The appeal was allowed, affirming the right to proceed against the guarantors.