Central Bank Of India vs C. L. Vimala & Ors

The Supreme Court held that the guarantor, C.L. Vimla, was not bound by the settlement agreement reached at the Lok Adalat since she did not sign the joint memo, as required under Section 21 of the Legal Services Authorities Act, 1987. The Court emphasized that the rights of a guarantor cannot be compromised without their consent, and thus the auction sale of the property was set aside. The Court upheld the High Court's decision to allow Vimla's writ petition, thereby protecting her possession of the property.