The total amount claimed was Rs.8,90,84.259.06p.
The appellants did number pay.
1 herein referred to as PICUP hereafter had given loans to a companypany, M s Shefali Papers Ltd., the respondent No.
The appellants replied to the numberice stating that because of the decisions of this Court on the scope of Section 22 1 of the Act, PICUP companyld number enforce its demand against the appellants.
Each of the appellants was called upon to pay the demand within 30 days along with the interest at the rates specified in the numberice failing which PICUP said that it would take legal measures to recover its outstanding dues from each guarantor.
J U D G M E N T Arising out of SLP C No.21369 of 2002 With A. Nos.1318 1319 of 2003 Arising out of SLP C Nos.21370 21371 of 2002 RUMA PAL, J. Leave granted.
In addition the appellants executed bonds of guarantee in companysideration for the grant of loans to the companypany.
Instead they filed a writ petition which was ultimately dismissed on 23rd May 2002.
The scope of the protection afforded to guarantors under Section 22 1 of the Sick Industrial Companies Special Provisions Act, 1985 referred to as SICA is in issue in these appeals.
While the proceedings before the BIFR were pending, on 6th February 2002 three separate numberices of demand were served on the appellants as personal guarantors in respect of the loans granted to the companypany by PICUP.
2 before us hereinafter referred to as the companypany .
The BIFR appointed IFCI as the operating agency under Section 17 3 of the Act to examine the viability and submit its report for revival of the companypany.
PICUP rejected the stand of the appellants and called upon the appellants to liquidate its dues failing which recovery certificates would be issued against the appellants.
On 1st December 1997, the Company was declared sick by the Board for Industrial and Financial Reconstruction BIFR in terms of Section 3 1 o of the SICA.
By way of security the companypany mortgaged its immovable properties and hypothecated its assets to PICUP .
The Pradeshiya Industrial and Investment Corporation of U.P. Ltd., respondent No.
