Dwarika Prasad vs State Of U.P .

The Supreme Court addressed the issue of the enforceability of a loan guarantee under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), specifically Section 13(2). The Court held that the appellant, as a guarantor, was bound by the terms of the loan agreement and the subsequent actions taken by the bank, including the confirmation of sale after the loan default. The Court ruled that the appellant's attempt to withdraw a writ petition in favor of pursuing Debt Recovery Tribunal proceedings did not invalidate the bank's actions under the SARFAESI Act, affirming the bank's right to enforce the mortgage.