( 1 ) THE respondent instituted Suit No. 2556 of 1967. (The Commissioners for the Port of Calcutta v. The Chartered Bank) for recovery of Rs. 7,35,000/- and for other reliefs. The basis of the respondent's claim is that on or about May 5, 1965. it was agreed between the respondent and a British Company known as Blyth Dry Docks Shipping Building Co. Ltd. (hereinafter referred to as the Company) that the Company would build and deliver to the respondent 2 Hopper Barges at a price of 3,50,000/-each aggregating 7,00,000/ -. In consideration of the contract the appellant by two several Deeds of Guarantee dated 7-6-1966 guaranteed the due performance and observance by the company of all the covenants and conditions of the said contract for supply of Barges and promised to pay on demand 17,500/- in respect of each of the said two Barges in the event of a breach or non-performance of the contract or in the event of any neglect or omission by the company. Pursuant to the said contract for the supply of the 2 Barges the respondent from time to time paid divers sums to the company aggregating 1,75,000/ -.

( 2 ) ON or about September 13, 1966. the company went into voluntary