NATIONAL SPICES Vs. ANDHRA BANK

JUDGEMENT

(1.) An order rejecting the application to implead an additional" defendant is challenged by the first defendant in revision.

(2.) First defendant is a partnership firm and other defendants are its partners. Suit was filed by the Andhra Bank for realisation of amounts advanced under various heads of loans. Contention was that the advance was guaranteed by the Export Credit Guarantee Corporation (ECGC) and therefore the Corporation is a necessary patty. A separate application filed for that purpose was opposed both by the plaintiff as well as ECGC.

(3.) Admittedly the transaction between the plaintiff and the defendants is independent of the agreement (Ext.B1) between plaintiff and ECGC to which defendants are not parties. There seems to be some independent transaction between defendants and ECGC in which plaintiff is not interested and is not a party. The contention of the defendants that ECGC guaranteed the advances to them by the plaintiff does not appear prima facie to be correct. Such a claim was denied both by the plaintiff and ECGC and the contention is that the transaction between ECGC and defendants is entirely different and unconnected with the plaint transaction. The ECGC has issued a Whole Packing credit guarantee to the plaintiff Bank under which when the whole or any portion of the amount due from the defendants is ultimately found irrecoverable after exhausting all remedies independently, there will be a specific liability for the ECGC That is rather in the form of an insurance unconnected with the transaction between plaintiff and defendants and the relief claimed against the defendants in the suit.