Civil Procedure Code, 1908, Order 37, Rule (3)(5)

Civil Procedure Code, 1908—Order 37, Rule (3)(5)—Indian Contract Act, 1872, Section 139—Suit for recovery of loan amount against guarantors—Application for permission to defend the suit—Plea by guarantors that since the plaintiff-appellant had got a promissory note executed in its favour by the borrower and had further made the borrower create an equitable mortgage in its favour by deposit of title deeds, they would be absolved of their liability in terms of Section 139 of the Contract Act—According to the guarantors, their plea gave rise to a triable issue against the claim of the plaintiff-apellant and, therefore, they should be permitted to file their written statements and contest the suit—Held, plea of the guarantors does not give rise to a triable issue—Trial Court rightly dismissed applications filed by the guarantors under Order 37 Rule 3 sub-rule (5) of the CPC.

File Name:- SC_JANUARY 2012_16