Financial Creditor can proceed against the Guarantor without first suing the Principal Borrower – K. Paramasivam Vs. The Karur Vysya Bank Ltd. & Anr. – Supreme Court
September 8, 2022
The Hon'ble Supreme Court held that the issues raised in this appeal are settled by this Court in Laxmi Pat Surana (2021) ibclaw.in 53 SC. As held by this Court in Laxmi Pat Surana (supra), the liability of the guarantor is co-extensive with that of the Principal Borrower. The judgment in Laxmi Pat Surana (supra), rendered by a three-Judge Bench of this Court is binding on this Bench. It was open to the Financial Creditor to proceed against the guarantor without first suing the Principal Borrower. We find no ground to interfere with the concurrent findings of the Adjudicating Authority (NCLT) and the Appellate Authority (NCLAT).