- (1.) Defendants have filed this second appeal having lost in both the courts below.
(2.) Suit was filed by respondent-plaintiff against defendants/respondents. Defendants No.1 to 3 are State of Haryana and its authorities in the Excise and Taxation Department whereas defendant No.4 is a private dealer (assessee under the Haryana General Sales Tax Act, 1973 - in short the 'Act'). It is undisputed that plaintiff stood surety for defendant No.4 assessee for its sales tax liability under the Act. Defendants No.1 to 3 have served notice dated 18.05.2007 on the plaintiff requiring it to pay Rs. 13,13,328/- being the amount of sales tax due from defendant No.4- assessee. The amount has been demanded from the plaintiff as surety of the assessee.
(3.) In the suit, the plaintiff has challenged the aforesaid demand on the ground that the plaintiff as per terms and conditions of the surety bond had withdrawn its surety bound by serving notice on 26.12.1991 on defendants No.1 to 3 and the notice period of six months lapsed on 26.06.1992 and thereafter the plaintiff is not liable as surety of defendant No.4 to pay the amount due from defendant No.4.;