THIS DEED OF GUARANTEE executed at _______, this ___________ day of
_________________ Two thousand and ____ BY ABC of ________, Indian Inhabitant, having
address at __________________ ___________________, hereinafter called “THE GUARANTOR”
(which expression shall unless it be repugnant to the context or meaning thereof, mean and include
his heirs, executors and administrators) of the One Part; And X Y Z also of __________, Indian
Inhabitant, having address at ___________________________________, hereinafter called “THE
PRINCIPAL” (which expression shall unless it be repugnant to the context or meaning thereof, mean
and include his heirs, executors, administrators and Assigns) of the Other Part:
W H E R E A S: (a) The Principal has to recover a sum of Rs. _______________/- (Rupees
___________________________ only) as on _____________ from one M/s. Vijay
Constructions for which he has already adopted legal proceedings against the said M/s Vijay
Constructions.
(b) In consideration of the Guarantor agreeing, to guarantee the payment of
Rs.______________/- (Rupees ___________________ only) to the Principal in manner
appearing hereinafter, the Principal has agreed to discontinue the said legal proceedings
against the said M/s Vijay Constructions and to accept the said amount in full and final
settlement.
NOW THE GUARANTOR HEREBY AGREES with the Principal as follows:-
(i) The Guarantor guarantees the payment of a sum of
Rs. __________/- (Rupees _________________________ only) to the principal for and on
behalf of and on account of the said M/s Vijay Constructions.
(ii) The Guarantor shall pay a sum of Rs. ____________/- (Rupees ______________________
only) to the Principal in full and final satisfaction of all his claims against the said M/s Vijay
Constructions in monthly installments of Rs. ___________/- each. The first of such
installment shall be payable on or before _____________ and the remaining installments
shall be payable in succeeding months in the same manner. In the event of any two
defaults, the Guarantor shall be forthwith liable to pay the remaining unpaid amount
forthwith to the Principal.
(iii) The Principal shall discontinue legal proceedings adopted against the said M/s Vijay
Constructions.
SCHEDULE ABOVE REFERRED TO: SIGNED AND DELIVERED by )
the within named ABC, )
the GUARANTOR above named, in )
the presence of ————————— )

Using this format

This is a reference draft reproduced for study and adaptation. Court rules, court fees and the correct forum vary with the facts and the value of the claim, so have the document checked and filed by an advocate. A defective application can be returned or dismissed even when the case itself is good.

Our Banking & Recovery team drafts and files these documents before the Calcutta High Court, city civil courts, magistrate, family and consumer courts in Kolkata. We handle recovery suits, SARFAESI and insolvency proceedings.

Disclaimer: this page is a sample format reproduced for reference and study. It is not legal advice and does not create an advocate–client relationship.

Guarantee for Payment of Debt by Instalments

Using this format

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