ORDER
1. This appeal is filed by the plaintiff in the suit. The lower Court while decreeing the suit for the full amount of Rs.1,23, 107.46 as against the 1st defendant who is the principal borrower, however, granted decree for the principal amount of Rs.92,160/- only as against defendants 2 and 3 who are the guarantors. According to the appellant, defendants 2 and 3 also are liable for the interest and costs etc., along with the first defendant as their liability is co-extensive with that ofthe 1st defendant. I find force in this submission. Section 128 of the Indian Contract Act provides that the liability of the surety is co-existensive with that of the principal debtor unless it is otherwise provided by the contract. Ex.A3 is the guarantee bond executed by defendants 2 and
3 in favour of the plaintiff. It specifically provides that the guarantors will be jointly and severally liable not only for the principal amount of Rs.92,160/- which was advanced by the plaintiff to the ! st defendant but also for all monies which are now or shall at any time hereafter during the continuance of the guarantee be due from the principal debtor to the plaintiff and of all costs, charges and expenses which the plaintiff may incur in enforcing or obtaining payments of all such. Ex.A3 further provides that it shall be a continuing guarantee to the plaintiff for any amount from time to time not exceeding as aforesaid sum of Rs.92,160/- together with interest and charges thereon due on the said account. The lower Court, therefore committed an error in limiting the liability of defendants 2 and 3 to the principal amount ofRs.92,160/-only.
2. The appeal is accordingly allowed and there will be a decree for the entire suit amount of Rs. 1,23,107.46 Ps together with future interest and costs as against defendants 2 and 3 also along with the 1st defendant jointly and severally. However, there will be no order as to costs in this appeal.