CENTRAL BANK OF INDIA vs VIRUDHUNAGAR STEEL ROLLING MILLS LTD&ORS

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 30.8.1974, as there was no acknowledgment of liability by the guarantors for amounts advanced before that date. The Court emphasized that any variation in the original contract would absolve the surety, referencing the judgments in J.J. Harigopal Agarwal v. State Bank of India and D. K. Mohammed Ehiya Sahib v. R.M.P.V. Valliappa Chettiar. Consequently, the appeal by the Central Bank of India was dismissed, affirming the lower courts' decisions.