( 1 ) BY this order, I propose to dispose of the applications registered as I. A. Nos. 3114/1999 and 7322/2001, filed by the defendants under section 22 of The Sick Industrial Companies (Special Provisions) Act, 1985.

( 2 ) THE plaintiff herein filed a suit for recovery of an amount of Rs. 1,41,64,771/- against the defendants under the summary procedure as provided for under Section XXXVII of the CODE OF CIVIL PROCEDURE, 1908. In the said suit, an ex parte decree was passed by this Court by judgment and order dated 16th August, 1998. Thereafter, the defendants No. 1 and 2 appeared and filed an application under Order IX rule 13 Code of Civil Procedure praying for setting aside the ex parte decree. The aforesaid applications registered as i. A. Nos. 10368/1998 and 10370/1998 are pending for consideration. However, thereafter, another application was filed by the defendants being i. A. No. 3114/1999 under Section 22 of The Sick industrial Companies (Special Provisions) Act, which was filed on the basis of the reference communicated to the defendant No. 1/company by the board for the Industrial and Financial reconstruction, vide their letter dated 21st April, 1999. The aforesaid reference was rejected by the board for Industrial and Financial Reconstruction vide its order dated 9th October 2000 and the appeal filed against the said order was rejected by the Appellate Authority for Industrial and financial Reconstruction vide its order dated 20th february, 2001.

( 3 ) HOWEVER, before I. A. No. 3114/1999 could be disposed of, a fresh reference under Section 15 (1) of The Sick Industrial Companies (Special provisions) Act with regard to the defendant no. 1/company was registered by the Board for industrial and Financial Reconstruction which was numbered as Case No. 247/2001. The Registrar on behalf of the Board for Industrial and Financial reconstruction informed the defendant No. 1/company about the aforesaid position vide letter dated 21st june, 2001. Relying on the aforesaid letter. the present application was filed in this Court by the defendants seeking for stay of the proceedings in the suit as also in the execution petition, which was initiated by the plaintiff for enforcement of the judgment and decree passed by this Court on 18th August, 1998. The said application is opposed by the plaintiff/decree Holder on the ground that the defendant No. 1/judgment Debtor No. 1, was the principal borrower whereas, the defendant no. 2/judgment Debtor No. 2 was the guarantor and, therefore, no such order for stay of the execution proceedings against the defendant No. 2/judgement debtor No. 2 could be ordered. In support of their contentions the counsel appearing for the parties relied upon and referred to and placed before me the relevant provisions, namely, Section 22 (1) of the Sick Industrial Companies (Special Provisions) act, which for proper understanding is extracted below :-

"22. Suspension of legal proceedings, contracts, etc. (1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under sections 25 relating to an industrial company is pending, then, nothwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law or the memorandum and articles of association of the industrial company or any other instrument having effect under the said act or other law, no proceedings for the winding up of the industrial company or for execution, distress, or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof [and no suit for the recovery of money or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans or advance granted to the industrial company] shall lie or be proceeded with further, except with the