suit was really one to enforce the guarantee
bond, that the guarantee was a continuing
guarantee and, therefore, the suit could not be
said ... enforce the guarantee bond executed by the defendant. The
guarantee bond itself provides that the guarantee shall be a
continuing guarantee
917
and the defendant
Section 129 . 'Continuing guarantee' A guarantee
which extends to a series of transactions is called a
'continuing guarantee."
" Section ... terms of the guarantee bond, this Court held :
"The guarantee is seen to be a continuing guarantee and
the undertaking by the defendant
earlier, in the
agreement of guarantee itself. The agreement of guarantee clearly
provides that the guarantee shall be a continuing guarantee and
shall ... appellant to revoke the guarantee
as the appellant had agreed to treat the guarantee as a continuing
one and was bound by the terms
R.K. Jain vs Union Of India And Ors on 14 May, 1993
Equivalent citations
followed.
(c) Clause 13 provides for continuing the guarantee
where the principal debtor is an association of persons and
for continuance of the guarantee ... bare perusal of clause 13 would show that it provides
for continuing the guarantee where the principal debtor is
an association of persons
denomination or the
section never had; they could merely safeguard and guarantee
the continuance of such rights which the denomination or
section had. Where right
Bank
Guarantee furnished by the Citi Bank, N.A. in the sum of Rs.
2.72 cores. It is a conditional Guarantee. Copy of the
document ... contractors..........
2. That the guarantee hereby given
shall be continuing guarantee upto 19
May, 1990. The validity of this Bank
Guarantee will be extended
appointed substantively to a
permanent post in that Department who would
have continued in the service of Government
but for the transfer of the management ... supernumeraries under Government service
until further orders.
11. The Corporation shall guarantee
continued employment to all such personnel
as are transferred for service under
with the Bank,
468
that the guarantee was to be a continuing guarantee for the
ultimate balance which shall remain due to the Bank ... with your Bank.
(2) I declare that this guarantee shall be
continuing guarantee and shall not be
considered as cancelled or in any way affected
Thus on the express terms of this
document the contract of continuing guarantee undertaken by
the insurance company in favour of the plaintiff ... dealer of those goods, namely, defendant no.2 and that
guarantee was continued up to the limited amount
