Subrogation in liquidation limits a guarantor's claim to debts actually discharged, while an assignee bank retains secured status.

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....In liquidation, a guarantor or assignee can claim as a secured creditor only to the extent it proves payment of the discharged debt and its subrogation into the original creditor's shoes; without documentary proof of full discharge, the claim remains limited to the amount actually paid. An assignment supported by a registered charge was treated as covering the secured debt itself, not merely the value of the hypothecated machinery, and computation issues such as exchange-rate conversion were left to the Chartered Accountant's report. Allegations that the assignment was fraudulent were not accepted on the facts stated.....