EXPERIENTIAL LEARNING ASSESSMENT

GUARANTEE AGREEMENT

ILS LAW COLLEGE, PUNE

I-LLB, 2024-2025
SUBJECT- LAW OF CONTRACT – II
NAME - MANSHEKA KAR
DIVISION- 'A'
ROLL NO.- 6037
 GUARANTEE AGREEMENT
THIS GUARANTEE AGREEMENT ("Agreement") is made on 15 May 2024 by and
between:
MAYUR ENTERPRISES, a company incorporated under the laws of India and having its
registered office at 123 Industrial Avenue, Bhosari, Pune Maharashtra 411026 ("Guarantor")
Email: [email protected]
AND
Ms. SANYA SHARMA, an individual residing at Flat No. 501, Sadhana Apartment, Paud
Road, Kothrud, Pune Maharashtra 411038 ("Borrower")
Email: [email protected]
AND
AGRAWAL FINANCIAL INSTITUTION Ltd., a non-banking financial company duly
established and operating under the laws of India and having its registered office at Shop No.
7 Amber Plaza, Baner Road, Pune Maharashtra 411045 ("Lender")
Email: [email protected]
(The Guarantor, Borrower, and Lender are hereinafter collectively referred to as the "Parties"
and individually as a "Party")
WHEREAS:
A. The Borrower is desirous of availing a term loan facility of Rs.25,00,000 (Rupees Twenty-
Five Lacs Only) (the "Loan Amount") from the Lender to start her business venture and has
approached the Lender for the same.

B. As per the terms and conditions contained in the Loan Agreement dated 20th April 2024
(the "Loan Agreement") executed by and between the Borrower and the Lender, the Lender
has agreed to grant the Loan Amount to the Borrower at an interest rate of 10% (Ten Percent)
per annum on the Loan Amount, payable in quarterly installments commencing from the
expiry of a moratorium period of 5 (Five) years from the date of disbursement of the Loan
Amount.

C. Since the Borrower does not have any immovable assets or any other tangible security to
offer by way of security for due repayment of the Loan Amount together with interest, the
Lender has stipulated furnishing of an unconditional and irrevocable personal guarantee as a
pre-condition for grant of the Loan Amount to the Borrower.
D. Accordingly, the Guarantor has agreed to provide such guarantee for securing due
repayment of the Loan Amount together with interest payable thereon in terms of the Loan
Agreement.

NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND

COVENANTS HEREIN CONTAINED AND OTHER GOOD AND VALUABLE
CONSIDERATION (THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED), IT IS HEREBY AGREED BETWEEN THE PARTIES AS
FOLLOWS:

GUARANTEE
1.1 The Guarantor hereby unconditionally and irrevocably guarantees to the Lender, as a
primary obligor, due and punctual repayment of the entire Loan Amount of Rs.25,00,000
(Rupees Twenty-Five Lacs Only) together with interest at the rate of 10% (Ten Percent) per
annum on the Loan Amount payable by the Borrower in terms of the Loan Agreement
executed on 20th April 2024, and as may be amended, modified or revised from time to time
with or without the consent or knowledge of the Guarantor.
1.2 The Guarantor agrees and confirms that the guarantee herein contained is an
unconditional, absolute, and continuing one and shall not be considered as a guarantee for
collection of the amounts due under the Loan Agreement but shall be construed as a
guarantee of payment of all amounts due from the Borrower to the Lender under the Loan
Agreement. The liability and obligations of the Guarantor under this Agreement shall not be
discharged or affected by any change in the status or constitution of the Borrower or the
Lender.

1.3 The guarantee herein contained shall remain in force and effect till the entire Loan
Amount together with interest and other monies payable under the Loan Agreement are fully
paid, repaid, and discharged by the Borrower to the satisfaction of the Lender.

INVOCATION OF GUARANTEE
2.1 In the event of any default by the Borrower in repayment of the Loan Amount or any part
thereof or interest thereon as per the repayment schedule stipulated in the Loan Agreement,
the Lender shall be entitled to invoke and enforce this guarantee by issuing a written demand
notice to the Guarantor calling upon the Guarantor to pay forthwith the entire outstanding
Loan Amount and unpaid interest accrued thereon without any further notice, reference or
intimation to the Borrower.
2.2 Upon receipt of such demand notice from the Lender, the Guarantor shall forthwith pay
and make good to the Lender the entire outstanding amount payable by the Borrower under
the Loan Agreement without any demur, protest, or contest and without claiming any set-off
or counter-claim which the Guarantor may have against the Borrower.

GUARANTOR'S COVENANTS
3.1 The Guarantor covenants and declares that this Agreement constitutes legal, valid, and
binding obligations on the Guarantor which are enforceable under its terms.
3.2 The Guarantor confirms that it has the power and authority to execute and comply with
the obligations contained herein and that all necessary corporate approvals and authorizations
therefor have been duly obtained.

3.3 No insolvency proceedings, scheme of compromise, or arrangement under the Insolvency

and Bankruptcy Code, 2016, or any suit or litigation is initiated or pending against the
Guarantor.

3.4 The Guarantor shall not initiate any insolvency proceedings, scheme of compromise, or
arrangement with its creditors under the Insolvency & Bankruptcy Code without prior written
approval of the Lender.

RIGHTS OF THE LENDER

4.1 The Lender shall be at liberty, without in any way affecting or discharging the
Guarantor's liability and obligations hereunder, to vary, alter, or modify the terms and
conditions of the Loan Agreement and to compound with, give time or other indulgences to
the Borrower without any reference to the Guarantor.
4.2 The Lender's rights against the Guarantor under this Agreement shall remain in full force
and shall not be affected, diminished, or discharged for any reason whatsoever including by
any absorption or amalgamation of the Borrower with any other entity or any insolvency or
liquidation proceedings instituted against the Borrower.

4.3 The Lender shall have full liberty to exercise any remedies or to enforce any security or
securities available to the Lender either at the time of execution of the Loan Agreement or
any time thereafter without being bound to pursue or exhaust such remedies against the
Borrower before invoking and enforcing this guarantee against the Guarantor.
MISCELLANEOUS
5.1 Notices: Any notice or communication required or permitted under this Agreement shall
be deemed to have been duly served if in writing and served personally or sent by registered
post acknowledgment due or by recognized overnight courier service to the respective Parties
at the addresses mentioned hereinabove or at such other address as any Party may notify to
the other Parties in writing as its address for service.
5.2 Governing Law & Jurisdiction: This Agreement shall be governed by and construed per
the laws of India. The courts at Pune alone shall have exclusive jurisdiction to try and
entertain any dispute arising out of or in connection with this Agreement.

5.3 Severability: If any part, term, or provision of this Agreement is held to be illegal or
unenforceable, the validity or enforceability of the remainder of this Agreement shall not be
affected.

5.4 Waiver: Failure or delay by the Lender in exercising any right or remedy under this
Agreement shall not be a waiver thereof, nor shall any single or partial exercise of such rights
or remedies preclude its further exercise thereof or the exercise of any other right or remedy.

5.5 Assignment: The Lender may assign or transfer its rights and obligations under this
Agreement in whole or in part to any person without the prior consent of the other Parties, but
the other Parties shall not assign or transfer their rights and obligations under this Agreement
to any third party.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day,
month, and year first hereinabove written in the presence of the following witnesses:
SIGNED AND DELIVERED BY the "Guarantor"
MAYUR ENTERPRISES
through its authorized signatory Mr. Ramesh Gupta
in the presence of:

(Signature of Guarantor's Authorized Signatory)

SIGNED AND DELIVERED BY the "Borrower"

Ms. SANYA SHARMA
in the presence of:

(Signature of Borrower)

SIGNED AND DELIVERED BY the “Lender"

AGRAWAL FINANCIAL INSTITUTIONS LTD.
through its authorized signatory Mr. Rajiv Agrawal
in the presence of:

(Signature of Lender's Authorized Signatory)

Witnesses:
1.
2.