SEETHARAMA REDDY, J.

( 1 ) FIRST defendant is the appellant. Union of India filed the suit O. S. No. 256 of 1971 on the file of City Civil Court, Hyderabad for recovery of rs. 46,644-75 being the balance of Bank guarantee payable by the first defendant to the plaintiff, against the first defendant and in the alternative, against defendants 1 and 2 and for subsequent interest from the date of the suit at 6% per annum till the date of recovery and for costs.

( 2 ) THE plaint averments are:the second defendant was appointed by the plaintiff as the sole advertising agent to procure advertisements in the Telephone Directories for a total of five issues commencing from July, 1965. An agreement was entered into between the plaintiff and the second defendent on 6-4-1965. As per clause 4 of the said agreement the second defendant gave Bank guarantee by the first defendant Bank on 30-4-1965 for the due performance by him of the terms of the agreement. As per the Bank guarantee, the Bank is liable for a sum not exceeding Rs. 47,325-75 if the second defendant failed to perform his part of the contract. The issues of the Directory were published during July, 1965, Jan. 1966, August, 1966, Febua

Click Here to Read the rest of this document