Quick Summary: The Bombay High Court has decided that a guarantor, Amritlal P. Shah, is responsible again in a case involving TJSB Sahakari Bank. The court reversed a previous decision by another court that had cleared Shah from his responsibilities.
The TJSB Sahakari Bank, located in Thane, gave loans to several borrowers, and Amritlal P. Shah promised to pay if the borrowers didn't. This was made official through an agreement on February 2, 1994, and another promise on March 31, 1998.
When the borrowers didn't pay back, the bank sent a notice demanding payment on February 14, 2001. The bank then took the matter to court, asking Shah to pay Rs. 40,83,179 as he had promised.
On October 25, 2017, the court ruled in favor of the bank. However, Shah appealed, and on December 27, 2021, another court said he wasn't responsible anymore. They said this because the borrowers had sold off the goods that were used as a guarantee, which meant Shah was no longer responsible.
Mr. Shadab Jain, speaking for the bank, argued that the court misunderstood the rules. He said the bank wasn't careless and didn't have to protect the goods, as the borrowers were in charge of them.
"The bank acted quickly by sending a demand notice and taking legal action," Jain stated.
Mr. Sharad Bansal, speaking for Shah, agreed with the earlier court decision. He said the bank was careless because they didn't take action against the borrowers after the goods were sold.
Justice Amit Borkar of the Bombay High Court looked into the case and decided the bank wasn't careless. The court didn't find any proof that the bank's actions or lack of actions caused the loss of the goods.
"The bank used the legal options available to them," the judgment noted.
The court canceled the previous court's decision, making Shah responsible again as the guarantor.
Key Dates: - February 2, 1994: Agreement made - March 31, 1998: Promissory Note made - February 14, 2001: Notice sent - October 25, 2017: First court ruling - December 27, 2021: Appeal court ruling - November 11, 2025: High Court judgment
Summary of the Verdict: The High Court decided that Amritlal P. Shah is responsible for the debt as a guarantor, overturning the previous court's decision that had freed him from this responsibility.
