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Liability of Deceased guarantor to repay Debt shall fall upon legal heirs who were party to DRT...

Update / Judgement Date

04 Jul 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

BankingOther Legal Matters

The Delhi High Court has dismissed a petition against a DRAT order, ruling that the "liability of a deceased guarantor to repay a debt shall fall upon the legal heirs who were a party to the DRT proceedings." The court's decision clarifies a complex legal issue, stating that the liability of a guarantor does not cease upon their death. The ruling ensures that banks and financial institutions can recover their dues from the legal heirs.