1. The facts of the case are as follows:

The first respondent, a nationalized bank, had filed a suit for recovery of a sum of Rs.5,02,052/- with costs and interest from the petitioner and the second respondent, who were arrayed as defendants no.2 and 1, respectively.

The first defendant, respondent no. 2 herein, is said to have applied to the plaintiff for the issuance of a bank guarantee for a sum of Rs.8 lakh on 27.3.2000, in favour of one M/s HPC Ltd., Bangalore. The first defendant is also said to have executed a counter guarantee in favour of the plaintiff agreeing to repay the amount of Rs.8 lakh with interest, compounded with quarterly rests. He is said to have deposited a sum of Rs.2 lakh with the plaintiff bank, as a lien on the said account. It transpires, the petitioner, who was the second defendant in the suit, had also executed a deed of guarantee in respect of the transaction, to secure the due repayment of Rs.8 lakh, by the first defendant. In furtherance of the said guarantee, he is said to have extended an equitable mortgage executed by him much earlier in favour of the plaintiff bank, to extend to the present transaction as well. The mortgage was in resp