SITA RAM GUPTA vs PUNJAB NATIONAL BANK .

The Supreme Court examined the applicability of Section 130 of the Indian Contract Act, 1872, regarding the liability of a guarantor after revocation of the guarantee. The Court held that the guarantor remains liable for the loan amount even after revocation, as the guarantee was a continuing one and the bank's right to recover was not extinguished. The appeal by the guarantor was dismissed, affirming the High Court's decree against him for the loan amount plus interest.