Guarantor's Liability Can't Be Restricted To Cap Prescribed Under Deed Of Guarantee On Principal Borrower's Liability: NCLAT

The NCLAT has ruled that a "guarantor's liability can't be restricted to the cap prescribed under a deed of guarantee" on a "principal borrower's liability." The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person. The court's decision is a crucial reminder to all that they must be diligent in their dealings.