M/S.H.D.F.C vs Gautam Kumar Nag & Ors

The Supreme Court upheld the trial court's decision to dismiss the respondents' applications for permission to defend the suit under Order XXXVII of the Code of Civil Procedure, 1908. The Court clarified that the execution of a promissory note and creation of an equitable mortgage by the borrower does not absolve the guarantors of their liability under Section 139 of the Indian Contract Act, 1872. The Court affirmed the trial court's decree in favor of the appellant for the outstanding loan amount, emphasizing that the respondents failed to establish a triable issue.