Corporate guarantee invocation in insolvency petition: enforceability upheld, conditional sanction letter not a novation, limitation not barred after acknowledgment

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The enforceability of a corporate continuing guarantee was upheld: recitals in a subsequent guarantee are non operative and cannot discharge prior obligations, so a recital of discharge fails if the instrument itself is void. Blank spaces confined to recitals and non material terms do not void the guarantee and do not raise a prima facie construction issue. A sanction/review letter proposing to relieve a guarantor is a proposal, not a novation, and conditional relief does not discharge the guarantee absent fulfillment of conditions. Pendency of a civil suit alone does not defeat an insolvency petition; acknowledgment of liability in time prevents the claim from being time barred. The appeal was dismissed.....