Liability of principal borrower and guarantors is joint and several in guarantee contract

Jammu & Kashmir Bank Ltd Vs Ace Engineering (India) Pvt. Ltd (NCLT) NCLT Chandigarh held in contract of guarantee, the liability of the principal borrower and guarantor(s) is joint and several. Even if, either the principal borrower or guarantor has been discharged then the other party would not stand discharged automatically till the liability is met out or discharged. Facts- The present petition has been filed by Jammu & Kashmir Bank Ltd. (referred to as ‘Petitioner/Financial Creditor’) through its Authorized Representative, Mohd. Hanief Kirmani, u/s. 7 of the Insolvency and Bank...