Nihal Seneviratne & Another vs. State Bank of India – sllr 2014 volume 1 page 320

In the case between Nihal Seneviratne & Another (as guarantors, Directors of Nihal Brothers Marketing (Pvt.) Ltd) and the State Bank of India, the Supreme Court reviewed the enforceability of a Guarantee Bond and the extent of liability under trust receipt facilities. The key legal issues addressed included the Commercial High Court’s jurisdiction, the enforceability of secondary liability of guarantors without first proceeding against the principal debtor, the consequences of non-demand for certain trust receipts, and interpretation of suretyship privileges, particularly beneficium ordinis sue excussionis and beneficium divisionis. It was held that the Commercial High Court possessed jurisdiction as the transactions at issue constituted commercial transactions. The enforceability of the g