TJSB SAHAKARI BANK LIMITED Vs. AMRITLAL P. SHAH

JUDGEMENT

(1.) The petitioner bank challenges the judgment and order passed by the Cooperative Appellate Court. By that order, the Appellate Court discharged respondent No.1 from his liability as a surety under Ss. 139 and 141 of the Contract Act.

(2.) The petitioner is a multi state cooperative bank. It had granted various financial facilities to respondent Nos.2 to 5 who are the borrowers. Respondent No.1 stood as guarantor for these facilities by executing a Hypothecation Agreement dtd. 2/2/1994. He also executed a Demand Promissory Note dtd. 31/3/1998.

(3.) The borrowers defaulted. Hence, the petitioner recalled the facilities by issuing a Demand Notice dtd. 14/2/2001. Thereafter, the petitioner filed Dispute CC No.433 of 2001 before the Cooperative Court. It was later renumbered as CCT No.327 of 2005. The guarantor was arrayed as OP No.8. The petitioner claimed Rs.40,83,179.00 from the guarantor based on the Hypothecation Agreement and the Demand Promissory Note.