1. Whether the decision pronounced by a Three Judge Bench of the
Supreme Court, reported as (2015) 1 SCC 166 KSL & Industries Ltd. vs.
Arihant Threads Ltd. & Ors. has changed the track in which the river
was flowing heretofore, is the question which arises for consideration in
the two appeals. As per the writ petitioners the said decision holds that
recovery proceedings under Recovery of Debts Due to Banks and
Financial Institutions Act, 1993 are to be treated as a suit and therefore if
the principal borrower is declared as a sick industrial company
proceedings under Recovery of Debts due to Banks and Financial
Institutions Act, 1993 cannot lie or be continued against the guarantors.
Is that so?
Source: Indian Kanoon