Pages

Saturday, August 22, 2009

'Guarantor as liable as debt defaulter'

Supreme Court of India CIVIL APPEAL NO. 4613 of 2000

INDUSTRIAL INVESTMENT BANK OF INDIA LTD. Versus BISWANATH JHUNJHUNWALA

Date of Judgment: 18 August, 2009 Judge(s): Dalveer Bhandari,H.L. Dattu


apex court has ruled that the principal debtor and the guarantor or surety are both equally liable to be proceeded against for recovery of a loan by the creditor. This means, if your friend was evasive in paying back the loan, then the bank would be fully within legal limits to initiate proceedings against you for recovering the outstanding loan amount.

No comments:

Post a Comment