- (1.) The plaintiff has brought this action for recovery of sum of Rs.1,80,414/- against the defendants as guarantors. The facts out of which this action arises shortly as follows:
(2.) A company known as the Central Jute Co. Ltd. having its registered office at Narayanganj in East Pakistan (to be called hereafter as the Company) maintained an overdraft account with the plaintiff then carrying on business of banking in the name and style of National Bank of India Ltd., Narayanganj Branch. Subsequently, the name of the plaintiff bank was first changed to National Overseas and Grindlays Bank Ltd., with effect from 1st January, 1958 and later on the name was again changed to National and Grindlays Bank Ltd., with effect from 1st January, 1959.
(3.) By the Deed of Hypothecation dated 8th November, 1954, the Company hypothecated in favour of the plaintiff the stocks of jute described in the Hypothecation Deed to secure a loan to be granted by the plaintiff up to a limit of Rupees 10 lakhs (Pakistan Rupees). On the same date i.e., 8, November, 1954, the defendants Nos. 1, 2 and 3 executed in Calcutta a Deed of Guarantee in favour of the plaintiff in its Calcutta Branch by which the defendants jointly and severally agreed repayment of monies due in the said overdraft account of the Company in Narayanganj Branch with the agreed interest at 1% over State Bank of Pakistan rate of interest with a minimum of 4 % per annum. It was further agreed that the amount of the principal together with interest was to be paid by the defendant when called upon to do so; and lastly the amount of the liability was to be calculated in Indian Rupees at the rate of exchange declared by the State Bank of Pakistan.;