Industrial Investment Bank Of India Ltd vs Bishwanath Jhunjhunwala

The Supreme Court held that under Section 40 of the Industrial Reconstruction Bank of India Act, 1984, a creditor can seek attachment of a borrower's assets without including the guarantor in the proceedings. The Court emphasized that the deed of personal guarantee executed by the respondent as a director of the borrower company is enforceable, allowing the creditor to recover dues despite the borrower's defaults. The appeal was dismissed, affirming the High Court's decision that the respondent's liability as a guarantor remains intact regardless of the proceedings against the borrower company.