S.133 Contract Act | Surety Not Liable For Borrower's Withdrawals After Modification Of Loan Limit Without Consent : Supreme Court
The Supreme Court of India delivered an important judgment clarifying the liability of guarantors in loan transactions. The Court held that a guarantor cannot be held liable for loan amounts withdrawn by a borrower beyond the sanctioned limit without the guarantor’s consent. However, the guarantor remains legally responsible for the original loan amount for which the guarantee was given. The decision was delivered by a bench comprising Justice BV Nagarathna…
