PUNJAB NATIONAL BANK Vs. PACK AND PRINT

JUDGEMENT

(1.) THIS appeal is filed by the appellant Bank on the ground that the trial Court has erred in dismissing the suit against the guarantor on the ground of limitation. Counsel for the appellant submitted that dismissal of the suit against the guarantor as barred by limitation is bad in law. Counsel for the appellant invited attention to para 67 of the judgment of the trial Court wherein it is held that suit is within limitation against defendants 1 to 3 as they have acknowledged their liability under Section 18 of the Limitation Act. But this acknowledgement is not binding upon defendant Nos. 4 and 5 guarantors. Guarantors are not bound by the acknowledgement of debtor and suit against guarantor has been dismissed.

(2.) BRIEF facts of the case are that the defendants 1 to 3 had executed documents on 12. 9. 1980, 11/2/1981 and 11. 1. 1983 accepting their liability on 11. 1. 1983 and 19. 1. 1983. Suit was on 10th June, 1984.

(3.) ONLY question involved in this appeal is whether the guarantor is bound by the acknowledgement of the borrower.