MAHARASHTRA APEX CORPORATION LTD Vs. POOVAPPA

JUDGEMENT

(1.) This is a revision by the decree-holder-Bank against the order dated 3-9-1979 passed by the First Additional Civil Judge, Mangalore, in Execution Case No. 112 of 1977 allowing I.A.IX and dismissing the execution.

(2.) Judgment-debtor No. 1 Viswanath had borrowed money from the decree-holder-Bank(Maharastra Apex Corporation Ltd). One Sankappa father of Judgment-debtor No. 2 had stood surety in respect of the said loan. The Maharastra Apex Corporation Ltd., filed a suit and obtained a decree against the principal debtor as well as the surety. The plaintiff-Bank sued out the execution against both the judgment-debtors. Poovappa is the legal representative of the surety. In the course of the execution, Judgment-debtor No.1 Viswanath requested the decree-holder to grant him monthly instalments at the rate of Rs. 250/The decree-holder had no objection for the same and agreed to give monthly instalments of Rs. 250/- to the principal judgment-debtor. Poovappa, the L.R. of the original surety was not a party to that arrangement between the Bank and the principal Judgment debtor. So the L.R. of the surety viz. Poovappa filed an application I.A. IX stating that on account of the grant of instalments to the Judgment-debtor No.1 the liability as a surety stood discharged. The said plea putforth by Poovappa the L.R. of the surety was accepted by the Court below and it allowed IA. IX and ultimately dismissed the execution.

(3.) The Learned Counsel Sri Shivashankar Bhat urged before me that once a decree is passed against the principal borrower and the surety, the relationship of principal borrower and surety would cease and they would be jointly and several lyliable to pay the debt. He relied on a decision in Meenakshisundaram Chettiar -v.- Velambal Animal., A.I.R. 1944 Madras 423 It was observed in the said case on page 423 as :