B.N.KIRPAL, J.

(1) THE appellant had, after Respondent 4s management was taken over by U.P. State Textile Corporation Limited (Respondent 3) under the Industries (Development and Regulation) Act, advanced some money to the said Respondent 4. In respect of the advance so made. Respondents 1, 2 and 3 executed deeds of guarantee undertaking to pay the amount due to the Bank as guarantors in the event of the principal borrower being unable to pay the same.

(2) SUBSEQUENTLY, Respondent 3 which had taken over the management of Respondent 4 became sick and proceedings were initiated under the Sick Textile Undertakings (Nationalisation) Act, 1974 (for short "the Act"). The appellant filed suit for recovery against the guarantors and the principal debtor of the amount claimed by it.

(3) THE following preliminary issue was, on the pleadings of the parties, framed:

"WHETHER the claim of the plaintiff is not maintainable in view of the provisions of Act 57 of 1974 as alleged in para 25 of the written statement of Defendant 2?"

(4) THE trial court as well as the High Court, both came to the conclusion that in view of the provisions of Section 29 of