https://www.taxtmi.com/caselaws?id=787252 The central issue is whether sureties are discharged when the creditor permits the principal debtor to overdraw beyond a sanctioned cash credit facility. Applying Section 133, the unauthorized overdraft is a variance that discharges the surety only as to transactions after the variance. Applying Section 139, discharge requires a creditor act or omission that impairs the surety's eventual remedy; no such impairment is shown here. Outcome: sureties remain liable to the extent of the original sanctioned amount of Rs. 4,00,000 with applicable interest and are not liable for overdrafts beyond that without their consent. en-us Fri, 27 Feb 2026 00:00:00 +0530 Mon, 02 Mar 2026 08:34:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787252 The central issue is whether sureties are discharged when the creditor permits the principal debtor to overdraw beyond a sanctioned cash credit facility. Applying Section 133, the unauthorized overdraft is a variance that discharges the surety only as to transactions after the variance. Applying Section 139, discharge requires a creditor act or omission that impairs the surety's eventual remedy; no such impairment is shown here. Outcome: sureties remain liable to the extent of the original sanctioned amount of Rs. 4,00,000 with applicable interest and are not liable for overdrafts beyond that without their consent. Case-Laws Indian Laws Fri, 27 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787252