...connection with any such securities or any proceeds thereof.The guarantors hereby declare that this guarantee shall be a continuing guarantee and shall not be..., relying on Section 130 of the Act, sought to argue that in view of the fact that Section 130 clearly provides for revocation of a continuing guarantee as to future transactions by notice to the...appropriate to reproduce Section 130 of the Act, which reads as under:“130. Revocation of continuing guarantee.—A continuing guarantee may at anytime be revoked by the surety, as to...

....—The liability of the surety is coextensive with that of the principal debtor, unless it is otherwise provided by the contract.129. ‘Continuing guarantee’.—A...guarantee which extends to a series of transactions is called a ‘continuing guarantee’.130. Revocation of continuing guarantee.—A continuing guarantee may at any time be...account, this guarantee shall be a continuing guarantee for payment of the ultimate balance to become due to Syndicate by the borrower not exceeding Rs 11,70,000 as aforesaid...

...first argument advanced was that the guarantee given by the appellant by Ex. 3 was not a continuing guarantee within the meaning assigned to that term by...section 129 of the Contract Act which provides that a guarantee which extends to a series of transaction is called a continuing..., and there were no series of transaction between the plaintiff Bank and the defendant No. 1. On account of this reason, it was urged that the guarantee furnished by the appellant was not a continuing...

...executed by the defendant No. 6 is also a continuing guarantee, and therefore, even if there is any variation in the loan amount due or loan limits increased or decreased or to make any other.... 4 and 5 is not in dispute and the said guarantee reads that, “In consideration of your opening (or continuing) an account with or issuing of Bank guarantee to Salem Steel Industries….hereby jointly...Banking charges, etc……..”. The guarantee deed further reads that, “This guarantee shall be a continuing guarantee and in full force until three calendar months after each of us shall have given or...

...this appeal.2. Counsel for the appellant Bank submitted that the respondent D-6 executed continuing guarantee under Ex. A9 and as it is a continuing guarantee. D-6 is liable till he revoked...that guarantee and any revocation letter sent by D-6 will operate only with regard to the future transactions after the revocation notice and for the prior transactions this continuing guarantee will...continuing guarantee and as D-6 has sent revocation letter revoking the continuing guarantee, he is discharged from this liability immediately when he sent that revocation letter and the order passed by...

...by the appellant Bank. D1 is the main borrower and D2 and D3 are the guarantors. According to the Counsel for the appellant Bank. D2 and D3 executed the Continuing guarantee and as per the Continuing...guarantee they are liable for the Suit claim and their guarantee continues till the main borrower pays that amount and the Continuing guarantee shall come to end only after issue of notice by the...appellant Bank as per the conditions provided in the Continuing guarantee and after issue of notice the appeal was filed in time and the Continuing guarantee was in force and as per the Continuing...

...agreement, it was a continuing guarantee, but it came to be terminated by way of notice in the year 1987; that demand was made after a period of three years and that the O.P was filed out of time and...guarantee deed would clearly reveal that it was a continuing guarantee. The learned counsel took the court to Section 128 of the Indian Contract Act, which speaks about the...Surety's liability and also Section 129 of the Act, which speaks about the continuing guarantee and would add that a very reading of the above provisions would clearly indicate that a guarantee which...

.... The appellant executed deeds of continuing guarantee guaranteeing to repay the amount advanced to the 2nd respondent along with interest thereon. Subsequently, the cash credit limits were extended to Rs....4. We are in agreement with the view of the High Court that the suit was not barred by limitation. The guarantee being a continuing guarantee, so long as the principal debt...remained due and payable, the guarantor also remained liable.5. We are also in agreement with the High Court that the guarantee is not only for repayment of the principal...

...stated is a continuing guarantee within the meaning of Section 129 of the Contract Act and may be revoked in regard...surety that an administrator will duly get in and administer the estate of a deceased person, this can be said to be a continuing guarantee within the meaning of the Contract Act. It appears that in the...." If the case was one of continuing guarantee the surety had an absolute right to revoke his guarantee as to all future transactions whatever his motive may have been. It was in consequence of the...

...it to be one of a continuing guarantee. Section 129 of the Contract Act, 1872 (hereinafter referred to as “the Act”) defines a continuing guarantee as:“129. ‘Continuing...guarantee’.—A guarantee which extends to a series of transactions is called a ‘continuing guarantee’.”Section 130 of the Act says that:“130.... Revocation of continuing guarantee.—A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor.”14. A...

.... Ragammall(2). The former Court held that a surety bond given under the circumstances stated is a continuing guarantee within the meaning of...continuing guarantee within the meaning of the Contract Act. It appears that in the Calcutta case the Court deferred disposing of the case until it had enquired whether the administrator had been...reason desires to be discharged.” If the case was one of continuing guarantee, the surety had an absolute right to revoke his guarantee to all future transactions whatever his motive may have been. It...

...continuing guarantee, which, under the law, he was competent to revoke. Reliance was placed upon illustration (a) of section 129 of the Indian Contract Act: “A, in...due consideration of the terms of the contract, came to the conclusion that it was not one of continuing guarantee and that Syed Hasan Ali was not competent under...defendant impugns the correctness of this decision.Whether or not the transaction is a continuing guarantee is to be determined by the terms of the instrument. It is mainly a question...

...continuing guarantee or otherwise. In order to determine this question the court ought to have examined the terms of the contract. The court ought to have addressed itself to the further question whether the...contract came within the definition of a continuing guarantee as given in section 129 of the Indian Contract Act. If the court held that it was a continuing guarantee, a...was of the nature of a “continuing guarantee” within the meaning of section 129 of the Indian Contract Act. The guarantee was evidently given for the performance of as series...

...-guarantor is Article 55 and not Articles 19 and 21 of the Limitation Act, 1963 and according to him, it is a continuing guarantee and the terms of Ex. P. 4 and surrounding...circumstances amply demonstrate that it is a continuing guarantee and in that behalf limitation starts when the contract is broken and suit can be instituted within three years from the breach. If the...contention of the respondent-Bank is correct, then the claim will be in time and if for any reason the contract of guarantee is held to be not a continuing one, then the contention of the appellant...

...JUDGMENT1. The effect and extent of a continuing guarantee so far as the law of limitation is concerned, is the question raised for a decision in this Second Appeal. It...respondent. The appellant and deceased second defendant (whose legal representatives are respondents 3 to 6) executed a continuing guarantee (Ext. A3) in favour of the 1st respondent on 18.1.1994..., based on Ext. A3, continuing guarantee appellant and the legal representatives of the deceased second defendant were held liable to pay the amount.4. Appellant challenged that judgment...

...The Judgment of the Court was delivered byThomas P. Joseph, J.:— The effect and extent of a continuing guarantee so far as the law of limitation is concerned, is the...executed a demand promissory note in favour of the 1st respondent. The appellant and deceased 2nd defendant (whose legal representatives are respondents 3 to 6) executed a continuing guarantee (Ext. A3) in...the suit. However, based on Ext. A3, continuing guarantee appellant and the legal representatives of the deceased 2nd defendant were held liable to pay the amount.4. Appellant...

...the 3rd defendant is liable for the suit claim. On a perusal of Ex. A-9 document, it is seen that it is a continuing guarantee and defendant No. 3 has executed that continuing guarantee for a sum of Rs...not segregate and give a breakup of the liability corresponding to each facility and Ex. A-9 cannot be accorded the status of a continuing guarantee and there is no other document to which defendant No...ground of Ex. A-9 being a continuing guarantee must fail and Ex. A-9 cannot be accorded the status of a continuing guarantee and inasmuch as Ex. A-9 did not provide for an authorisation in favour of...

...duly executed a continuing guarantee on 30-11-1974 in favour of Indian Bank, being Ext. 54 before the trial court.5. The said continuing guarantee clearly mentions various credit.... Clauses 3, 4, 5, 6 and 7 of the said guarantee read as under:“3. The guarantor further declares that this guarantee shall be a continuing guarantee and shall not be revocable...find therefrom that the appellant has clearly executed a continuing guarantee on 30-11-1974 supported by a board resolution, whereby in clear and unambiguous term guaranteed repayment unconditionally...

...Sir Lionel Leach, C.J:— Admittedly the only question which arises in this appeal is whether the respondent gave a continuing guarantee to the appellant bank. The respondent is the wife of...guarantee should be a continuing one and that in these circumstances he was bound to give effect to the rule in Clayton's case. It is common ground that if the rule in Clayton's case does apply the...concluded that there was here a continuing guarantee. The authorities indicate that in deciding such a question the whole of the surrounding circumstances must be taken into consideration, unless the...