https://www.taxtmi.com/caselaws?id=96694 A security deed describing a company as surety may operate as a tripartite novation and indemnity rather than a mere guarantee where it acknowledges receipt of funds and assumes joint and several liability; implied forbearance and time to the principal debtor can supply consideration. However, a resolution authorising such a deed is ineffective where interested directors were statutorily disqualified from voting and the counterparty had notice through surrounding circumstances, defeating reliance on indoor management. Borrowings within the articles' authorised ceiling, bona fide received and used for company business, remain repayable by the company. en-us Wed, 18 Sep 1935 00:00:00 +0530 Tue, 10 Jan 2012 13:21:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96694 A security deed describing a company as surety may operate as a tripartite novation and indemnity rather than a mere guarantee where it acknowledges receipt of funds and assumes joint and several liability; implied forbearance and time to the principal debtor can supply consideration. However, a resolution authorising such a deed is ineffective where interested directors were statutorily disqualified from voting and the counterparty had notice through surrounding circumstances, defeating reliance on indoor management. Borrowings within the articles' authorised ceiling, bona fide received and used for company business, remain repayable by the company. Case-Laws Companies Law Wed, 18 Sep 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96694