Liability of guarantor in event of default by the borrower was limited only to extent of value of mortgaged property

FEMA, BANKING & INSURANCE: Where in terms of Corporate Debt Restructuring (CDR) agreement, petitioner stood as a guarantor in respect of loan taken by 'A' Ltd. from respondent bank and mortgaged its property, in event of default committed by 'A' Ltd. in repayment of loan, liability of petitioner was limited only to extent of value of mortgaged property and, thus, petitioner could seek discharge of same by paying value of said property

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