( 1 ) THE facts in this case are shortly as follows.

( 2 ) IN 1948 by Act 12 of 1948 was established the Rahahilitation Finance Adminstration, the main purpose of which was the giving of financial assistance to displaced persons, to enable them to settle in business or industry. The respondent No. 1, Shri Jatindra Narayan Majumdar claims to be a refugee from East Pakistan. Prior to 1952, he took a loan from the said Administration of a sum of Rs. 35,000 in connection with his cloth business carried on in Calcutta. Respondents Nos. 2 and 3 stood as sureties for the re-payment of the said loan. On the 29th of August. 1952 a fire broke out in the said shop and it is claim-ed that the entire stock was burnt out and destroyed The stock was insured with the Central Insurance Company Limited and as the laid Insurance Company failed to pay the claim, the respondent No. 1 filed a suit being suit No. 3284 of 1954 in the Original Side of this Court, claiming the value of the stock amounting to Rs. 66,050/13/6 pies, for damages and other reliefs. The amounts due to the said Administration are, under the said Act 12 of 1948, recoverable as a public demand. On or about the 24th of