Supreme Court of India

Sita Ram Gupta v. Punjab National Bank and Ors.

Neutral citation
Reported as [2008] 4 S.C.R. 636
Bench Tarun Chatterjee J.
Decided 10 March 2008

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

1 Supreme Court bench has cited this judgment.

What the Court ordered

We hold that in view of the nature of guarantee entered into by the appellant with the Bank, the statufory provision under D Section 130 of the Act shall not come to his help.

Judgment, page 8

From the headnote

Indian Contract Act 1872 Section 130: y- Continuing guarantee - Revocation - . Guarantor - c Liability of - Held: Agreement entered into between Bank and Guarantor clearly providing that the Guarantee ·shall be continuing guarantee and remain in operation in respect· of subsequent transaction - The Agreement was lawful - Letter · written by the guarantor to Bank withdrawing guarantee was of no effect in terms of guarantee clause in the agreement - Hence, High Court rightly held that the guarantor cannot claim benefit of the provisions uls. 130 of the Act on groun.d that it ~ was waived by

Where later benches applied it

Of those, 1 referred to

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