PUNJAB NATIONAL BANK Vs. RISHABH JAIN

JUDGEMENT

(1.) This revision under Section 115, C.P.C. has been filed against the judgment and order dated 3.11.1992 of IXth Addi. District Judge. Gorakhpur in Original Suit No. 338 of 1988.

(2.) The applicant--Punjab National Bank filed a suit for recovery of Rs. 7,65,533 against defendant Nos. 1 to 5 for advances made to M/s. Vishnu Carbon (India) a partnership firm. At the time of advance of loan, defendant Nos. 4 and 5 and Smt. Janak Dulari, mother of respondent No. 4 had stood as guarantor. The guarantee deed was executed on 15.10.1982. The defendant Nos. 4 and 5 moved an application that as co-guarantor Smt. Janak Dulari had expired, the deed of guarantee executed by them was not enforceable. This application was allowed by the learned Addl. District Judge and it was directed that the names of defendant Nos. 4 and 5 be deleted from the array of parties. It is this order which is subject-matter of challenge in the present revision.

(3.) I have heard learned counsel Sri K. L. Grover for the applicant and have examined the record. In my opinion, the order is wholly unsustainable in law. A joint guarantee deed was executed by defendant Nos. 4 and 5 and Smt. Janak Dulari. It was a continuing guarantee deed and there was no provision in the same that in the event of death of one of the guarantors, the liability of other guarantors will also cease to exist. The death of one of the guarantors cannot make the whole guarantee deed invalid or void. The point is fully covered by the decision of the Supreme Court in Sri Chand v. Jagdish Pershad, AIR 1966 SC 1427, wherein it is held as follows :