K P GOPINATH Vs. K PADMANABHAN

JUDGEMENT

(1.) A co-operative society advanced a loan. It obtained an award against the principal debtor. Thereafter, a separate proceeding was initiated against the surety, the first respondent, resulting in Ext.P1 award. The Co-operative Appellate Tribunal set aside that award holding that since an award had already been passed against the principal debtor, a separate proceeding against the surety would not lie. This writ petition is filed challenging that decision, Ext.P2.

(2.) The first respondent has filed counter affidavit supporting the impugned decision and further contending that the petitioner has no locus standi to file this writ petition.

(3.) The cause of action for a creditor to sue the principal debtor and its cause of action to sue a surety for a loan transaction are different and one does not get excluded by the finality of the other. For support by precedents, reliance placed by the learned counsel for the petitioner to the decision in Traders Co-operative bank Ltd v. A.K.Mallick and others [(AIR 1934 Patna 52(2)] is apposite. For this short reason, the impugned Ext.P2 has to go and Ext.P1 would stand.