Guarantor relief under non-acceptance of limit renewal?

You must have signed a document for continuing guarntee at first place.

I dont recall anything mentioning continuing guarantee in the original term loan sanction. It was mentioned it will be renewed periodically every year. Is there any specific document name or form name?

Thanks.

Normally the guarantee documents get executed by banks would cover guarantee till the loan is closed or the guarantee is revoked. When the guarantee is revoked, most probably the bank will ask the guarantor to close the loan dues.  If the guarantor revoked his guarantee his liability will be restricted as on the date of such revocation.  If the loan was renewed with higher loan amount without the signature of the guarantor, then the guarantor can take it as a ground in further litigation. 

Please read the whole personal guarantee deed carefully, to properly understand the responsibilities of the guarantor. I partially agree with Raju that "Normally the guarantee documents get executed by banks would cover guarantee till the loan is closed or the guarantee is revoked." The part I do not agree with is "..or the guarantee is revoked." In most cases the guarantor cannot unilaterally revoke/withdraw his guarantee, without the written consent/permission of the beneficiary of the guarantee (the Bank in this case). Otherwise anyone can stand guarantor today and withdrawn his guarantee tommorrow by just writing a letter, putting the beneficiary of the guarantee in a critically unsafe/unsecured position. While a loan/sanction needs to/may be renewed periodically, it is not necessary for a guarantee to be renewed, and in this case, will subsist and continue till the loan amount is extinguished in full, or till the Bank permits the Guranantor to withdraw his guarantee. The guarantee (normally) also binds the succesors and assigns of the guarantor.

Once the Guarantee is revoked by the Guarantor and a written notice is served on the bank, the bank would not normally allow  further debits in the account. In this case, it is stated to be a term loan, which generally does not require renewal and generally no further amounts are released in the term laon once repayment starts. The liability of the guarantor ceases under the limitation act i.e. 3 years after due date of each instalment.