Mr. Kaamchand wanted to establish his car manufacturing unit.

Being an engineer and entrepreneur

himself, he sought funding from Kukurja Group. Kukurja group agreed to provide him an initial loan of
50 million dollars. They also agreed that after successful completion of manufacturing unit, Kukurja
group will look forward to a partnership with kaamchand Car Manufacturing Co., Mr. Gopu Nath agreed
to become the guarantor on behalf of Mr. Kaamchand for the 50 million dollar loan and also agreed to
stand guarantor if subsequent partnership ensues.

Despite several hardships Mr. Kaamchand was able to establish the Kaamchand Car Manufacturing Co.,
this was followed by huge praise and appreciation by the market and the industry. Kukurja group was
extremely pleased by this feat. They sought to establish a partnership with Kaamchand Car
Manufacturing Company. This resulted in formation of a joint venture company Kaamchand and Kukurja
Car Manufacturing Co.

The peaceful set up did not last for long and gradually differences started arising regarding management
of the company. Kukurja Group demanded repayment of the initial loan of 50 million dollars. They also
sought repayment of 100 million dollars infused in the company in the form of equity. Kaamchand was
unable to repay the said amount as the Kaamchand Kukurja Co. has taken huge orders for procurement
of raw materials therefore they did not have liquidity to pay off the said amount to Kukurja Group.
Kukurja Group sought payment from Mr. Gopi Nath, as he agreed to be the guarantor on behalf of Mr.
Kaamchand.

(Section 1 to 20 & Section 124-134 and any other section you deem fit to support your answer)

Q1). Is Gopi Nath responsible to pay the amount on behalf of Mr. Kaamchand? If yes to what extent?
(Use relevant statutory provisions)(You can use the whole contract act) (15 Marks) (500-750 words)

Q2). Discuss whether Mr Gopi Nath would be responsible to cover the equity infusion cost? Discuss the
concept of continuing guarantee. (15 Marks) (750-1000)