TaxTMI 
TaxTMI 
1989 (11) TMI 331
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.... His contention is that he has not signed Ext. A-1 agreement as a guarantor and so he is not liable for any amount due to the plaintiff from the first defendant. It is the case of the plaintiff that the terms of the agreement were reduced to writing and a draft of the agreement to be executed by the 'defendants was drawn up and approved by both parties and that when the fair agreement was bein....
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....ormance of the contract by the first defendant. Second defendant's involvement in the transaction is really established by the fact that the amount due to from the plaintiff (Rs. 832.54) was adjusted towards Ext. A-1 transaction. He made no protest about it. Besides, there is also evidence that the second defendant was instrumental in supplying firewood to plaintiff through Appukuttan Nair. Th....
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....due performance of the contract by the principal debtor. When a Court has to decide whether a person has really guaranteed the due performance of the contract by the principal debtor, all the circumstances concerning the transaction will have to be necessarily considered. Court cannot adopt a hyper technical attitude that the guarantor has not signed the agreement and so he cannot be saddled with ....
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...., The Court has to consider all the surrounding circumstances and evidence to come to a finding when the guarantor refutes his legal liability. In Mathura Das v. Secretary of State AIR 1930 All. 848 and in Nandlal Chanandas v. Firm Kishinchand AIR 1937 Sindh 50 it was held that contract of guarantee can be created either by parol or by written instrument and that it may be express or it may by imp....