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 Section 420 IPC, ruling that the bank's actions in appropriating Fixed Deposit Receipts (FDRs) were justified due to the borrower's default. The Court established that the guarantors, having executed a guarantee agreement, could not claim innocence when the bank acted to recover dues. The judgment reinforced the enforceability of guarantees and the responsibilities of guarantors in loan agreements.