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NCLAT: Date of default for personal guarantor depends on terms of guaranteed contract

Insolvency

Mavjibhai Nagarbhai Patel Vs. State Bank of India & Ors.

December 18, 2024

Summary

NCLAT, New Delhi Bench, held that that while liability of a borrower and guarantor is co-extensive, a guarantor's liability arises from the terms of the contract of guarantee. Guarantor's default of dates has to be determined by specific terms of agreement for such guarantee.

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