KRISHAN TALWAR Vs. HINDUSTAN COMMERCIAL BANK LTD

JUDGEMENT

(1.) THIS is a defendant's appeal against a judgment and a decree of Mr. Gurbachan- Singh, Subordinate Judge 1st Class, Jullun-dur dated the 21st December, 1950, decreeing the plaintiffs' suit for Rs. 13,375. 00 with future interest 4 1/2 per cent per annum from the date of the suit till realisation and awarding costs.

(2.) THE appellant was defendant No. 2 in the Court below. He became the guarantee broker of the plaintiff-bank by a document Ex. D-1 dated the 2nd september, 1946. By clause 13 of this agreement he guaranteed the repayment of borrowings by all approved borrowers of loans and advances made by the Bank to such persons and by clause 20 he deposited a sum of Rs. 50,000. 00 as security for the due performance of his contract.

(3.) DEFENDANT No. 1 was a joint Hindu family firm and the proprietor of that firm was Mangal Das who was introduced by defendant No. 2 to the plaintiffs and on the 25th November 1946 he executed a pronote as proprietor of firm Man-gal Das ram Parkash for a sum of Rs. 25,000. 00. He also pledged certain goods -- cotton and toria --to the Bank which is evidenced by a document Exhibit P. 6 at page 31 of the Paper Book. There was a cash credit account with the Bank and on the 23fd august, 1947, a sum of Rs. 13,456/5/6 was due from defendant No. 1 to the plaintiffs which is evidenced by Exhibit P. 7, the account produce by the Bank.