https://www.taxtmi.com/caselaws?id=111624 A guarantor's liability may be treated as co-extensive with that of the principal debtor under the Indian Contract Act, 1872, so a creditor is not confined to a merely contingent claim once default has occurred and demand has been made. Later arbitration proceedings do not, by themselves, establish a bona fide dispute if the underlying liability is not specifically denied and the defence is only that recovery should first be pursued elsewhere. Subsequent awards or payments may affect quantification or recovery mechanics without extinguishing the existing debt. Earlier notice and later communications, read with continuing settlement dealings, may be sufficient on the facts, and a fresh formal notice may not be essential. en-us Fri, 14 Jul 2006 00:00:00 +0530 Tue, 24 Apr 2012 13:26:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111624 A guarantor's liability may be treated as co-extensive with that of the principal debtor under the Indian Contract Act, 1872, so a creditor is not confined to a merely contingent claim once default has occurred and demand has been made. Later arbitration proceedings do not, by themselves, establish a bona fide dispute if the underlying liability is not specifically denied and the defence is only that recovery should first be pursued elsewhere. Subsequent awards or payments may affect quantification or recovery mechanics without extinguishing the existing debt. Earlier notice and later communications, read with continuing settlement dealings, may be sufficient on the facts, and a fresh formal notice may not be essential. Case-Laws Companies Law Fri, 14 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111624