Contractual Nuance vs. Statutory Mandates: Interpreting Guarantees under the Indian Contract

The Supreme Court of India ('Court') in UV Asset Reconstruction Company Limited v. Electrosteel Castings Limited, Civil Appeal No. 9701/2024, has delivered a critical judgment clarifying the legal boundaries between a Deed of Undertaking and a Contract of Guarantee under Section 126 of the Indian Contract Act, 1872 (‘Act’). The Court's decision underscores that mere commercial nomenclature and internal funding arrangements do not satisfy the rigorous legal requirements of a guarantee.

Factual Background

Filed under:
India, Banking, Company & Commercial, Insolvency & Restructuring, Litigation, PSL Advocates & Solicitors, Barclays, House of Lords, State Bank of India, Associated British Ports, Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
Authors:
Himesh Thakur , Vaibhav Mishra
Location:
India
Firm:
PSL Advocates & Solicitors