A. E. MITCHELL Vs. C. L. PHILLIPS

JUDGEMENT

(1.) IN the suit out of which this appeal arises the appellants, as legal personal representatives of a deceased creditor, are seeking to recover from the respondents as guarantors part of a debt due and owing from the principal debtor. Before the trial judge the appellants succeeded, but on appeal the High Court of Judicature in Bengal reversed the trial judge and dismissed the suit.

(2.) ON February 14, 1927, one Galstaun mortgaged real estate in and near Calcutta and personal estate of various kinds to Arathoon Stephen the appellants' testator to secure a loan of Rs. 40,00,000 and interest. Stephen in fact borrowed the money from the Imperial Bank in order to lend it to Galstaun.

(3.) ON May 14, 1927, Stephen died and on October 12, 1927, the appellants as his executors and trustees demanded from Galstaun immediate payment of the loan and interest and gave him notice that in default of payment within three months they would sell the mortgaged properties. On October 15, 1927, the respondents were notified of the appellants demand against the principal debtor. The principal debtor failed to pay and on June 8, 1928, the appellants notified the respondents of this fact and demanded under the guarantee payment of 6 lakhs from each of them.