STATE BANK OF INDIA, REPRESENTED BY ITS BRANCH MANAGER Vs. SMT. SINAM NINGOL THAMBAL DEVI, SRI O. TOLEN SINGH

JUDGEMENT

(1.) THIS appeal is directed against the Judgment and decree dated 23.2.1976 passed by the Subordinate Judge -II, Manipur, in Original (Money) Suit No. 114/73/10/74/13/74, dismissing the suit against the first Defendant.

(2.) A brief narration of the facts leading to the present appeal are as follows:

(3.) THE second Respondent brought the first Respondent on the same day to stand as a guarantor for his due repayment. He also executed a Pro -note in favour of the first Respondent for a sum of Rs. 25,000/ - promising to pay the said amount on demand with interest. The Pro -note, however does not learn any date. The Appellant (Plaintiff) further stated that the first Respondent, in turn endorsed the said pro -note in favour of the Appellant. The first Respondent also executed an agreement on the same day standing guarantor of the second Respondent and promised inter -alia, that she would be jointly and severally liable for the outstanding amount due to the Appellant from the second Respondent. She also promised that the Appellant Bank at its discretion may realise the full dues from the Guarantor. In pursuance of the agreement, a Cash Credit Account was opened in the name of the second Respondent and he received the money by cheques. The Appellant Bank used to send statement of accounts to the second Respondent from time to time.