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NCLAT Rules Guarantor’s Liability Can Exceed Cap Set in Guarantee Deed on Principal Borrower’s Debt - (05 Sep 2025)

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NCLAT held that a guarantor’s liability isn’t limited to the capped amount in the guarantee deed. The guarantor’s obligation to repay upon guarantee invocation is separate from the principal borrower’s liability, so the guarantor can be liable beyond the deed’s prescribed cap.

Tags : NCLAT   GUARANTOR   GUARANTEE DEED  

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