madhu mittal (director) 08 September 2010

difference in guarantor'name in guarantee deed

Sub: director’s name in guarantee deed instead of concern

A loan is given to a Private limited concern, named Gulmarg chemicals private limited whose director name is Ramesh chand Gupta. A guarantee is also taken from one Meenu Agrawal, but at the time of execution of guarantee deed etc. by mistake at the place of name of borrower Ramesh chand Gupta is written instead of the name of concern Gulmarg chemicals private limited. No loan is given to Ramesh chand Gupta. Whether this guarantee is still good against guarantor Meenu agrawal.

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3 Replies

harsh asthana (advocate) 08 September 2010

Meena Agarwal has very good ground to defend herself as she stood gurentor for the director of the company and not the company.

Revoking gurantee of meena agarwal may not stand in court of law

V. VASUDEVAN (LEGAL COUNSEL) 09 September 2010

the contents of the document as a whole has to be seen. If the entire documents describes the transaction of loan to be given to the company and the mistake is only at the foot of document relating to signature, it does not become invalid.

madhu mittal (director) 10 September 2010

Sir, V.Vasudevan, there are a number of documents of loan i.e. promissory note, a letter of handing over all postdated cheques etc executed by the borrower as a Private limited company and all the loan documents are signed by guarantor and below sign of guarantor, a stamp is also affixed as sign of guarantor. But in guarantee deed the name of borrower is written as Ramesh chand Gupta who is the signing director on behalf of Private limited, in stead of the name of concern i.e. Gulmarg Chemicals pvt ltd. Now please let me know whether the suit against guarantor is maintainable and if your answer is yes, let me know how to defend when the guarantor took stand as told by Mr.Harsh Asthana, advocate.