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P.V.Gopinathan vs Unknown on 13 July, 2012 cites

Union Bank Of India, Ernakulam vs T.J. Stephen And Ors. on 1 February, 1989

A Division Bench of this Court in Union Bank of India, Ernakulam v. T.J.Stephen (AIR 1990 Kerala 180) considered the same question and after reference to the decisions including Mrs. Margaret Lalita samuel v. Indo Commercial Bank Ltd. (supra) held that the agreement executed by the guarantor is a separate and collateral contract distinguished from the contract of debt between the principal debtor and creditor and that in such situation Article 55 of the Limitation Act would apply to the contract of guarantee. It was held that so far as the debt remains alive in the sense that it is not settled notwithstanding that liability of the principal debtor is extinguished by the law of limitation, the guarantors will continue to be liable unless there is a refusal on their part to pay amount in which case the period of limitation will run from the date of the refusal.
Kerala High Court Cites 18 - Cited by 15 - Full Document
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