Unilateral Revocation Of Guarantee Does Not Discharge Guarantor From His Obligations When Such Revocation Was Not Accepted By Creditor: NCLAT

In an important ruling, the NCLAT held that the unilateral revocation of a guarantee does not discharge the guarantor’s obligations. The case involved a creditor who sought to enforce a guarantee after it was revoked by the guarantor. The Tribunal ruled that revocation alone is insufficient to absolve the guarantor from their responsibilities, as the creditor had already relied on the guarantee. This decision affirms that guarantors must meet their obligations even if they attempt to revoke the guarantee before the debt is fully settled.