Zenith Steel Tubes & Industries Ltd & Anr vs Sicom Limited

The Supreme Court upheld the enforcement of a personal guarantee under Section 31(1)(aa) of the State Financial Corporations Act, 1951, despite the appellant company being declared sick under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The Court clarified that the liability of the guarantor is independent of the principal debtor's obligations, and Section 22 of SICA does not prevent the enforcement of guarantees. The appeal against the Bombay High Court's decision was dismissed, affirming the order for the guarantor to pay the outstanding amount with interest.