Whether the plaintiff can recover the amount from the guarantor or does he have to wait till he has exhausted his remedies against the defendant?
It is the duty of the surety to pay the decretal amount. On such payment he will be subrogated to the rights of the creditor under s. 140 of the Indian Contract Act and he may then recover the amount from the principal.
Whether a document jointly executed by two person creating a liability equal for both is to be regarded as materially altered if the liability is reduced equally for both but the alteration is made only by one of them?
At the stage when the alterations were made, the principal debtor had been acting for and on behalf of the appellant as the appellant had been standing surety for him. The plea of avoidance of contract by material alteration was of no avail to the appellant because the document was not altered while in possession of the promisee but was altered by the principal debtor who was at the time acting as the agent of the appellant.
Whether the appellant is discharged from the contract due to the variations made in the contract?
Any variance, made without the surety's consent in the terms of the contract between the principal debtor (s) and the creditor, discharges the surety as to transactions subsequent to the variance
Whether scaling down of the Principal Debtor’s debt will also ensure that the liability of the Surety is equally scaled down?
The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract.
Whether the breach of contract was committed by HSCL or the contractors and if the court can interfere in this matter?
Bank guarantees are an independent and distinct contract between the bank and the beneficiary and thus courts are not to interfere in them until there exists a situation of fraud.