Central Bank Of India vs Virudhunagar Steel Rolling Mills ...

The Supreme Court upheld the findings of the Trial Court and High Court that the personal guarantees executed by Respondent Nos. 2 to 4 were not applicable to liabilities incurred by the Respondent Company prior to the execution of those guarantees on 30.8.1974. The Court emphasized that there was no evidence to establish that the claims in the suit were for advances made after the guarantees were executed. The appeal by the Appellant Bank was dismissed, affirming that the sureties were discharged due to the variation in the original contract as per the principles established in the cited Madras High Court judgments.