People’s Bank vs. Fawziya Nizam – SC APPEAL CHC 05/2007-2024

In the case between People’s Bank and Fawziya Nizam, Tuan Furkan Buhary, Abdul Jabar Ifthikar Hussein, and Noor Mohamed Mohamy Nizam (guarantors for International Fashions (Pvt) Ltd), the court addressed the enforceability of a guarantee given in respect of an overdraft facility after prescription of the principal debt. It was held that the instrument in question constituted a primary, independent obligation or guarantee combined with indemnity rather than merely a secondary guarantee. The court determined that the guarantors remained liable, as the guarantee was enforceable on demand regardless of prescription affecting the principal debt, reaffirming the principle that the nature and construction of a guarantee may create a direct and autonomous liability for guarantors. The decision rel