9911796707
TMI Blog1997 (4) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... antee by the Excise Department. The bank guarantee is given under the orders 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, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Union of India and the excise authorities was allowed. However, during 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 orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 22 of the SICA. The relationship between the Excise Department and 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 liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the petitioner has also drawn our attention to the mandate of provisions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
