N SOUNDARAJAN Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) THIS appeal is preferred against the judgment and decree dated February 6,1986, in O. S. No. 586 of 1982 on the file of the Third Additional Subordinate Judge, Coimbatore. Defendants Nos. 2 to 5 in the suit are the appellants herein. Defendants Nos. 2 to 5 are the guarantors and they are defendants Nos. 2 to 5 in the suit, and the first respondent in the appeal is the plaintiff and the second respondent in the appeal is the first defendant in the suit. The first defendant is the principal debtor. The suit was decreed against all the defendants in the suit, and in so far as that part of the decree passed against the principal debtor, the first defendant company is concerned, the decree has become final. THIS appeal is concerned only with the guarantors liability.

(2.) THE parties are hereinafter referred to as described in the plaint. THE plaintiff filed the suit for recovery of a sum of Rs. 4,38,327. 90 from defendants Nos. 1 to 5 with further interest thereon at 19. 50 per cent, per annum from the date of plaint till the date of realisation of the amount and for costs of suit, charges and expenses and also for the relief for the sale of the universal testing machine with all its accessories.

(3.) THE third defendant filed a separate written statement, which was adopted by other defendants. THE stand of the third defendant is that the alleged guarantee has lapsed and they were not aware of the increase in the rate of interest from 9. 5 per cent, to 19. 50 per cent, per annum. THE main case is that the plaintiff is not entitled to the suit claim as the conditions for the grant of loan have been changed without the knowledge and consent of the guarantors. THEir case is that the suit is barred by limitation.