ZENITH STEEL TUBES & INDUSTRIES LTD.&ANR vs SICOM LIMITED

The Supreme Court held that the liability of a guarantor is independent of the principal debtor's liability under Section 31(1)(aa) of the State Financial Corporations Act, 1951. The Court affirmed the Bombay High Court's ruling that the personal guarantee could be invoked despite the company being declared sick under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The appeal was dismissed, upholding the order for the guarantor to pay the outstanding amount with interest.