Supreme Court · 2002 INSC 194 · Decided 12 April 2002
Industrial Finance Corporation of India LTD. v. The Cannanore Spinning and Weaving Mills LTD. and ANR.
- Court
- Supreme Court of India
- Citation
- 2002 INSC 194 · [2002] 2 S.C.R. 1093
- Case number
- CIVIL APPEAL No. 3239/1995
- Decided
- 12 April 2002
- Bench
- U.C. BANERJEE, Y.K. SABHARWAL (2-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
- Acts & sections cited
- Contract Act Section 56, 139, 140, 141, 128
Headnote
Contract Act, 1872: Section 56, 139, 140 and 141. B Principal Debtor obtained loan from creditor-Default in payment of C instalments-Nationalisation of sick units-Contract of Guarantee between creditor and sureties-Discharge o~Held, Guarantor/surety has strict liability towards creditor and against surety is presumed unless such discharge is· through the voluntary act of creditor without the consent of the surety/guarantor-Sick Textile Undertakings (Taking over of D Management) Act, 1972--Sick Textile Undertakings Nationalisation Act, 1974- Sections 5 and 29. Doctrine of
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