M.N.OJHA vs ALOK KUMAR SRIVASTAV

The Supreme Court upheld the High Court's dismissal of the petition for quashing criminal proceedings against the guarantors under Section 420 IPC, affirming that the bank's actions in appropriating Fixed Deposit Receipts (FDRs) were justified due to the borrower's default. The Court established that guarantors can be held liable for the borrower's debts when they have executed a guarantee agreement, and that the bank's prior notice to the guarantors was sufficient to initiate proceedings. The appeal was dismissed, maintaining the status of the ongoing trial against the guarantors.