Central Bank of India vs. Virudhunagar Steel Rolling Mills Ltd. & Ors. (SC)

Contract Act, 1872–Secs. 126 & 128–Guarantor–Liability of–Letter of guarantee was signed on 30.08.1974–No mention of any old transaction–Guarantee deed was effective and relevant only with regard to debt subsequent to 30.08.1974–Guarantor cannot be kept under the liabilities which has been incurred in the past when guarantor assumes liability thereof.