RANJIT KUMAR ROY Vs. KABIRAJ KISORI MOHAN GUPTA

JUDGEMENT

(1.) The plaintiffs are the Receivers of the Co-operative Hindustan Bank Ltd. (in liquidation). On or about 31 May 1929 the Bank at the request of both defendants and upon the guarantee of defendant 2 lent to defendant 1 a sum of Rs. 1000. Defendant 1 executed a promissory note dated 31 May 1929 as follows: On demand I, Kaviraj Kisori Mohan Gupta residing at 167/1/1, Cornwallis Street, Calcutta, promise to pay to the Co-operative Hindustan Bank Ltd, at Calcutta or order for value received the sum of rupees one thousand only together with the interest at 12 per cent, per annum until repayment in full.

(2.) Defendant 2 executed a letter of guarantee dated 30 May 1929 and addressed to the Bank as follows: As at my request and on my guarantee you have agreed to advance Rs. 1000 (one thousand) only on pro-note to Kaviraj Kishori Mohan Gupta, M.A. as may from time to time be required and as sane tioned by you, I do hereby guarantee the due repayment of the amount so advanced with all interests and charges on or before the due date or earlier on demand. This guarantee will remain in force until the debt due is fully and finally adjusted and will not be affected by any forbearance or arrangement for giving time or other facilities to the principal debtor the said Kaviraj Kishori Mohan Gupta.

(3.) Between 2 July, 1929 and 17 November 1936 defendant 1 made various payments on account of accrued interest on the loan aggregating Rs. 935-3-0, which were all endorsed on the back of the note in the handwriting of and signed by defendant 1. The last of such payments was made on 17 November 1936. The plaintiffs allege that there is now due and owing by the defendants a sum of Rs. 1009-11-5 for principal and interest calculated up to 31 May 1938, after giving credit for all such payments. Demands for repayment were made on each of the defendants in 1932 and 1933, respectively. The suit was instituted on 14th January 1939.