https://www.taxtmi.com/caselaws?id=103027 A company in liquidation may be dissolved where its assets have been sold, the records are unavailable, and continuation of liquidation serves no useful purpose. The Court also clarified that dissolution of the principal debtor company does not extinguish the liability of guarantors or sureties. Applying the principle that a surety's liability is co-extensive with that of the principal debtor, and that discharge of the principal debtor by operation of law does not discharge the surety, the pending suit against the guarantors could continue in accordance with law, while the company was dissolved under section 481 of the Companies Act, 1956. en-us Mon, 18 Dec 1995 00:00:00 +0530 Mon, 20 Feb 2012 13:17:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103027 A company in liquidation may be dissolved where its assets have been sold, the records are unavailable, and continuation of liquidation serves no useful purpose. The Court also clarified that dissolution of the principal debtor company does not extinguish the liability of guarantors or sureties. Applying the principle that a surety's liability is co-extensive with that of the principal debtor, and that discharge of the principal debtor by operation of law does not discharge the surety, the pending suit against the guarantors could continue in accordance with law, while the company was dissolved under section 481 of the Companies Act, 1956. Case-Laws Companies Law Mon, 18 Dec 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103027