https://www.taxtmi.com/caselaws?id=100129 An unconditional bank guarantee creates an independent and absolute obligation on the bank to pay on demand within the stipulated time, without proof of default by the company in liquidation. Liquidation of the principal debtor does not discharge the surety, because discharge by operation of law in liquidation does not affect the guarantor's liability. The creditor may enforce the guarantee notwithstanding winding-up proceedings, and the company court cannot restrain payment merely because the bank may later seek reimbursement from the company's securities, as that is a separate matter between the bank and the company. en-us Wed, 13 Oct 1982 00:00:00 +0530 Wed, 21 Feb 2018 10:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100129 An unconditional bank guarantee creates an independent and absolute obligation on the bank to pay on demand within the stipulated time, without proof of default by the company in liquidation. Liquidation of the principal debtor does not discharge the surety, because discharge by operation of law in liquidation does not affect the guarantor's liability. The creditor may enforce the guarantee notwithstanding winding-up proceedings, and the company court cannot restrain payment merely because the bank may later seek reimbursement from the company's securities, as that is a separate matter between the bank and the company. Case-Laws Companies Law Wed, 13 Oct 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100129