contract. A continuing
guarantee is different from an ordinary guarantee. There is also a difference
between a guarantee which stipulates that the guarantor is liable ... principal debtor.
6. A continuing guarantee is different from ordinary guarantee. There is
difference between a guarantee which stipulates that the guarantor is liable
under:
"129. Continuing guarantee.--A guarantee which extends to a series of transactions is called a "continuing guarantee".
Illustration ... second clause of the guarantee bond in that case was in the following terms:
"This guarantee shall be a continuing guarantee and shall apply
continuing guarantee. It is no doubt true that when a guarantee extends to series of transactions, it becomes a continuing guarantee and as long ... agency continued. The use of the term "continued" does not mean that it is a continued guarantee and it only means that
second document is a letter of
continuity. The letter of continuity states that the promissory note
continues to stand as security so long ... lakhs
and a guarantee bond was also executed guaranteeing the repayment of
amount. The guarantee was a continuing guarantee to the extent of limit
examined as DW2. The
appellants filed Ex.B2 registered continuing guarantee mortgage deed dated
28.08.1978 executed by Raghavaiah in his individual name in favour
demand, of the Facilities guaranteed. This Guarantee shall also
be a continuing guarantee and shall not be considered as either wholly or
partially satisfied ... bankruptcy, insolvency or similar proceeding instituted by or
against Subsidiary, this Guarantee shall continue to be fully applicable to
such obligation to the same extent
rent and that until such fixation is made they are agreeable to continue to pay at the rate of Rs. 15,400/- per month ... Court would have a duty to intervene to safeguard the continued guarantee of the rule of law."
The position of law is rather
whole debt; but only that where the surety has given a continuing guarantee, limited in amount, to secure the floating balance which may from time
petitioner is that Ex.A-1 is the agreement for continuing guarantee i.e. bill discounting facility to be extended to the first respondent-firm ... stood as guarantor and signed over the document for continuing guarantee from time to time under the Promissory Note not exceeding
principal debtor.
6. A continuing guarantee is different from ordinary
guarantee. There is difference between a
guarantee which stipulates that the guarantor is
liable ... enforceable
again the guarantor.
7. Limitation against a guarantor under a continuing
guarantee (which specified that the liability of the
guarantor is pay on demand
