https://www.taxtmi.com/caselaws?id=199134 A statutory suspension of a relief undertaking's liabilities under the Tamil Nadu Relief Undertaking (Special Provisions) Act, 1969 does not extend to guarantors or sureties. Section 4(b) operates only in relation to the undertaking and instruments to which it is a party, while a guarantee remains a separate and independent contract. Section 128 of the Indian Contract Act, 1872 makes the surety's liability co-extensive with the principal debtor's liability, but that does not discharge the surety where the principal debtor's remedy is only temporarily suspended and the underlying debt is not extinguished. Proceedings against the guarantors therefore could continue, and the surety remained liable unless discharged under recognised Contract Act grounds. en-us Mon, 01 Aug 1977 00:00:00 +0530 Wed, 21 Feb 2018 10:13:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=199134 A statutory suspension of a relief undertaking's liabilities under the Tamil Nadu Relief Undertaking (Special Provisions) Act, 1969 does not extend to guarantors or sureties. Section 4(b) operates only in relation to the undertaking and instruments to which it is a party, while a guarantee remains a separate and independent contract. Section 128 of the Indian Contract Act, 1872 makes the surety's liability co-extensive with the principal debtor's liability, but that does not discharge the surety where the principal debtor's remedy is only temporarily suspended and the underlying debt is not extinguished. Proceedings against the guarantors therefore could continue, and the surety remained liable unless discharged under recognised Contract Act grounds. Case-Laws Indian Laws Mon, 01 Aug 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=199134