Civil Procedure Code (CPC)

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Shruti Singh   06 May 2020

Validity of Guarantee

As per Limitation Act, what is the validity of guarantee (Bank Guarantee)


 4 Replies

Real Soul.... (LEGAL)     06 May 2020

That is not is limitation act as the bank gurantee is limited to term and terminates upon the Gurantee and Gurantor's mutual agreement.

SHIRISH PAWAR, 7738990900 (Advocate)     06 May 2020

Hello,

The limitaton will be same against borrower and guarantor unless it is revoked.

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     06 May 2020

Yes. The guarantee gets valid until the agreement of borrower gets revoked by any means by the banker.

Deekshitulu.V.S.R (B.Sc, B.L)     07 May 2020

that depends on the form of guarantee.  If it is continuing guarantee, the limitation is diferent. and there will be caluses that whenever the original borrower acknowledges the liability, the guarantee also continues.  It all can be siad by looking to the forms of guaranteee and the agreement between the original bowrrower and the lender


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