Search Results for "Guarantor's Liability"

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High Court of Karnataka Quashes Show Cause Notice for Willful Defaulter Declaration Due to Lack of Application of Mind — Bank Issued Notice Without Considering Petitioner's Reply or Providing Adequate Opportunity Under RBI Master Circular.

The petitioner, B.G. Chandrashekar, a borrower from Canara Bank, defaulted on a loan of Rs. 7,07,94,378/-. The bank initiated recovery proceedings und...

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Supreme Court Allows Appeal, Upholds Arbitral Award Holding Husband Jointly and Severally Liable for Wife's Debit Balance in Stock Trading Account — Oral Contract for Joint Liability Falls Within Scope of BSE Bye-law 248(a) Arbitration Clause.

The Supreme Court allowed the appeal filed by AC Chokshi Share Broker Private Limited against the order of the Bombay High Court's division bench, whi...

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Supreme Court Partially Allows Appeal in Recovery Suit Against Sick Industrial Company — Suspension of Proceedings Under Section 22(1) of SICA Does Not Bar Suit for Unadmitted Debt. High Court's Grant of 24% Compound Interest Reduced to 12% Simple Interest.

The case involves a dispute between Fertilizer Corporation of India Ltd. (FCIL), a public sector undertaking, and M/s Coromandal Sacks Private Limited...

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Bombay High Court Dismisses Appeal Against Refusal to Revoke Leave Under Clause XII Letters Patent in Summary Suit on Guarantee. Jurisdiction upheld as part of cause of action arose in Mumbai due to disbursement and part payments.

The appeal arose from a summary suit filed by Rabo India Finance Limited (Plaintiff) against Gouri Prasad Goenka (Defendant) based on guarantees execu...

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Bombay High Court Partially Sets Aside Arbitration Award Against Guarantors in Cooperative Bank Dispute — Guarantors Not Liable for Enhanced Credit Facility Without Their Consent. Guarantor Liability Cannot Be Extended Beyond Original Guarantee Under Section 34 of Arbitration and Conciliation Act, 1996.

The judgment concerns two arbitration petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996, challenging a common undated arb...

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Bombay High Court Allows Recovery Suit in Hire Purchase Agreement Case — Plaintiff Entitled to Outstanding Instalments and Damages. Breach of Contract by Defendant No.1 and Guarantor Liability of Defendant No.2 Established Under Hire Purchase Agreement.

The plaintiff, Tata Engineering & Locomotive Co. Ltd., filed a suit for recovery of Rs. 72,311/- with interest on the principal amount of Rs. 63,677/-...

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Bombay High Court Allows SFC Petition for Enforcement of Guarantee Under Section 31(1)(aa) of SFC Act, 1951. Guarantor's Liability Held Co-extensive with Principal Debtor Despite Non-Enforcement Against Principal Debtor.

The petitioner, SICOM Limited, a State Financial Corporation, filed a petition under Section 31(1)(aa) of the State Financial Corporation Act, 1951, s...

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Bombay High Court Allows SICOM's Petitions Under Section 31(1)(aa) of SFC Act for Recovery of Term Loan Defaults. Financial Corporation Entitled to Enforcement of Security Interest Without Prior Adjudication of Liability.

The petitioner, SICOM Limited, a deemed State Financial Corporation under Section 46 of the State Financial Corporation Act, 1951, filed a group of pe...

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Bombay High Court Upholds Conviction Under Section 138 NI Act for Dishonour of Cheque Issued as Security for Loan — Blank Cheque Given as Security Does Not Absolve Liability if Debt Exists

The petitioner, Chandrakant Laxman Kerkar, was convicted under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque for Rs. 6...