https://www.taxtmi.com/caselaws?id=99171 The Supreme Court held that a scheme benefiting a debtor company under Section 391 of the Companies Act does not release a guarantor co-debtor from their obligation under a joint and several decree. The court clarified that a composition under Section 391 does not affect the liability of a surety unless the contract of suretyship provides otherwise. The High Court reversed the Subordinate Judge's decision, allowing the decree holder to execute the decree against the guarantor co-debtor independently liable to pay the decretal amount. The judgment emphasized the guarantor's separate liability and upheld the decree holder's right to proceed with execution against the second judgment debtor. en-us Fri, 30 Mar 1973 00:00:00 +0530 Wed, 25 Jan 2012 14:32:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99171 The Supreme Court held that a scheme benefiting a debtor company under Section 391 of the Companies Act does not release a guarantor co-debtor from their obligation under a joint and several decree. The court clarified that a composition under Section 391 does not affect the liability of a surety unless the contract of suretyship provides otherwise. The High Court reversed the Subordinate Judge's decision, allowing the decree holder to execute the decree against the guarantor co-debtor independently liable to pay the decretal amount. The judgment emphasized the guarantor's separate liability and upheld the decree holder's right to proceed with execution against the second judgment debtor. Case-Laws Companies Law Fri, 30 Mar 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99171