T. Raju Setty vs Bank Of Baroda on 20 December, 1990
"The learned trial judge has also relied on a decision of the Supreme Court in Sri Chand v. Jagdish Pershad Kishan Chand, AIR 1966 SC 1427. In our view, the learned trial judge had not appreciated the ratio of the decision of the Supreme Court in the said case. In that case, the Supreme Court has recognised that the liability of the surety is joint and several and if a guarantor seeks to enforce the surety bond against some only of the joint sureties, the other sureties will not on that account be discharged nor will release by the creditor of one of the them discharge the other. As pointed out by Dr. Banerjee, in our view, rightly, in that case the Supreme Court was concerned with the fact that three of the sureties appealed from the order of the lower appellate court an in that the appeal one of the appellants died and the Supreme Court had held that the appeal had abated because the representatives of the second appellant had not been brought on record. We accept the interpretation put by Dr. Banerjee that the appeal in that case had abated not because the release of sureties could not be taken as discharge of the others but that the appeal would have affected jointly the rights of the appellants who were three of the sureties. In our view, this decision is not an authority for the proposition that if the suit against one of the co-guarantors is allowed to be dismissed, then the suit against one of the co-guarantors should also be dismissed on the basis of the principles of res judicata as held by the learned trial judge."