SUNIL PODDAR vs UNION BANK OF INDIA

The Supreme Court upheld the decision of the Debt Recovery Appellate Tribunal, affirming that the appellants, who had resigned as Directors of Adhunik Detergent Ltd. prior to the loan default, were still liable as guarantors for the loan taken by the company. The Court clarified that resignation does not absolve directors of their obligations as guarantors unless formally released by the creditor. The appeal was dismissed, confirming the liability of the appellants under the loan agreement.