M.N.Ojha & Ors vs Alok Kumar Srivastav & Anr

The Supreme Court upheld the High Court's dismissal of the petition for quashing criminal proceedings against the guarantors under Sections 409, 422, 426, and 120B IPC. The Court established that the guarantors, having executed a guarantee agreement, could be held liable for the bank's losses due to the borrower's default. The Court affirmed that the appropriating of Fixed Deposit Receipts by the bank was within its rights under the guarantee agreement, thus rejecting the claims of misconduct against the bank officials.