https://www.taxtmi.com/caselaws?id=291000 Revenue recovery proceedings against directors who had acted as personal guarantors for a defaulted company loan were upheld because the initiating institution was notified under the Revenue Recovery Act. The challenge to recovery was rejected on that basis. The Court, however, granted limited protection by directing that the petitioners' movable properties should not be proceeded against first, and could be sold only if the proceeds from other available properties were insufficient to meet the dues. The ruling confirms that a personal guarantor cannot avoid recovery action merely because the liability arose from the company's default, though the sequence of recovery may be regulated. en-us Mon, 19 Nov 2012 00:00:00 +0530 Sat, 24 Oct 2020 10:56:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291000 Revenue recovery proceedings against directors who had acted as personal guarantors for a defaulted company loan were upheld because the initiating institution was notified under the Revenue Recovery Act. The challenge to recovery was rejected on that basis. The Court, however, granted limited protection by directing that the petitioners' movable properties should not be proceeded against first, and could be sold only if the proceeds from other available properties were insufficient to meet the dues. The ruling confirms that a personal guarantor cannot avoid recovery action merely because the liability arose from the company's default, though the sequence of recovery may be regulated. Case-Laws Indian Laws Mon, 19 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291000