Topic
NCLAT ruled that guarantors remain liable for total debt despite deed clause limiting liability to mortgaged property value, upholding DRT’s crystallised debt and confirming that guarantee provisions override security clauses under IBC Section 114.
The Punjab & Haryana High Court ruled that a claimant can recover the entire compensation award from any one of the joint tortfeasors, overturning the tribunal’s 50-50 split. This affirms that under the Motor Vehicles Act, joint tortfeasors are jointly and severally liable, expanding recovery avenues for motor accident victims.
The Maharashtra State Consumer Commission held that both the car manufacturer and authorized dealer are jointly liable for deficiency in service when an extended warranty repair takes 58 days, awarding ₹3 lakh for loss of use and mental agony. This sets a critical precedent: warranty obligations are not delegated away - both parties remain accountable for service failures under the Consumer Protection Act.
The Supreme Court ruled that a collaborator, though not a direct signatory to the main contract, can invoke arbitration if bound by a Deed of Joint Undertaking integral to the contract's execution. This decision underscores that arbitrability hinges on substantive involvement rather than mere signature, impacting contractors, collaborators, and employers in complex bidding arrangements.
Bombay High Court rules that insurers share joint and several liability for interest on delayed compensation under Workmen's Compensation Act, 1923.