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Punjab & Sind Bank v. Debts Recovery Appellate Tribunal and Others

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 1410 of 2016)Decided 16 Feb 2016
Civil Appeal No. 1410 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

This order does not decide the main case. The High Court had held that respondent no. 2, a guarantor and director, was absolved of liability because another person had allegedly executed a fresh guarantee in substitution. The bank argued that this finding rested on a factual error and that no such substituting guarantee existed in the form the High Court believed.

Decision Breakdown

This is not a final decision on the main case. The Court found an error apparent on the face of the record but did not itself decide whether the factual premise was correct. It disposed of the appeal by permitting the bank to file a review application before the High Court, which was not to be dismissed on limitation grounds if filed within a month. All other contentions, including those of respondent no. 2, were left open before the High Court.

Lesson Learnt

There is no final ruling yet on whether the guarantor remains liable. The High Court will decide that question on the bank's review application.

Official source (sci.gov.in)View Judgment (PDF)

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