https://www.taxtmi.com/caselaws?id=195927 A notification under section 7(1)(b) of the Sugar Undertakings (Taking Over of Management) Act, 1978 suspends only liabilities expressly covered by it. Because the notification in force excluded secured liabilities owed to banks and financial institutions, the bank's mortgage debt was not stayed. The guarantors' liability also remained unaffected, as a section 7 notification does not suspend proceedings against sureties whose liability is co-extensive with that of the principal debtor under section 128 of the Indian Contract Act, 1872. The suit for recovery under Order 34 Rule 4 of the Code of Civil Procedure, 1908 could therefore proceed against both the undertaking and the guarantors. en-us Fri, 14 Feb 1986 00:00:00 +0530 Tue, 14 Nov 2017 17:42:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=195927 A notification under section 7(1)(b) of the Sugar Undertakings (Taking Over of Management) Act, 1978 suspends only liabilities expressly covered by it. Because the notification in force excluded secured liabilities owed to banks and financial institutions, the bank's mortgage debt was not stayed. The guarantors' liability also remained unaffected, as a section 7 notification does not suspend proceedings against sureties whose liability is co-extensive with that of the principal debtor under section 128 of the Indian Contract Act, 1872. The suit for recovery under Order 34 Rule 4 of the Code of Civil Procedure, 1908 could therefore proceed against both the undertaking and the guarantors. Case-Laws Indian Laws Fri, 14 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=195927