S VASUPALAIAH Vs. VYSYA BANK KODAGENAHALLI BRANCH

JUDGEMENT

(1.) THE petitioner-plaintiff has preferred this revision petition against the judgment and decree dated 31-10-1998 passed in S. C. No. 22 of 1993 by the learned principal civil judge (junior division), madhugiri, dismissing the suit for recovery of a sum of Rs. 2,208. 16.

(2.) THE facts in brief are as hereunder. One ramakrishna availed a loan of Rs. 4,000. 00 in 1983 from the defendant-bank. The plaintiff stood as a surety for the aforesaid loan. The plaintiff had purchased a janatha cash certificate on 3-9-1985 which was due for encashment on 3-3-1992 and the amount payable on maturity was Rs. 1,852. 41. When the principal debtor ramakrishna did not repay the loan the plaintiff was informed of the same and he was called upon to get the loan repaid by ramakrishna and it was made clear to him that the amounts due in the janatha cash certificate would be paid to him. Thereafter, when the plaintiff demanded the payment due under the said certificate he was given an endorsement to the effect that the said amount shall be attached to the crop loan of Sri ramakrishna. It is thereafter the plaintiff has filed the above suit for recovering the said amount.

(3.) IT is not in dispute that the bank has not filed any suit against the said ramakrishna for the recovery of the amount. It is also not in dispute that the claim against ramakrishna is barred by time. On the day the endorsement came to be issued the claim against ramakrishna was time barred. However, the bank has adjusted the amount due under the janatha cash certificate to the plaintiff towards the loan borrowed by ramakrishna on the ground that the plaintiff being a guarantor his liability is co-extensive as that of the principal debtor. The suit of the plaintiff came to be dismissed by the small causes court holding that the bank had the right to adjust the amounts due to the plaintiff under the aforesaid fixed deposit receipt towards the loan amount of ramakrishna as the plaintiff was a guarantor for the said loan. It is that finding which is challenged before this court.