Case Law Analysis
|National Company Law Appellate Tribunal
Section 133 Indian Contract Act | Novation or Variance Without Guarantor Consent Discharges Personal Guarantee : NCLAT
NCLAT holds that any renewal, novation, or variance of credit facilities without the personal guarantor's consent automatically discharges their liability under Section 133 of the Indian Contract Act. This ruling reinforces the protection of guarantors under the IBC and sets a precedent for creditors to secure explicit consent for modifications.