Satish Chandra Jain vs National Small Industries Corporation ...

The Supreme Court held that the appellant, who was a guarantor under the original hire-purchase agreement, was not liable for the debts incurred after the execution of a new agreement on 2nd April, 1986, which did not mention the appellant's guarantee. The Court emphasized that the absence of reference to the earlier guarantee in the new agreement indicated that the appellant was no longer considered a guarantor. Consequently, the attachment of the appellant's property under the U.P. Public Moneys (Recovery of Dues) Act, 1972 was deemed improper, leading to the overturning of the High Court's dismissal of the appellant's writ petition.