( 1 ) M/s. Formosa Plastic Corporation of U. S. A. (for short formosa ) had filed a suit for recovery of US $ 19,935,539. 38 on account of price of goods sold and delivered against M/s. Kunstoplast of America Inc. (for short "koa ) as principal debtor and Ashok Kumar Chauhan (for short "chauhan ) as guarantor/ surety in the District Court at Texas, USA. Chauhan had executed guarantee for the liability of KOA on 19th October, 1993. Subsequently, on March 25,1994 the parties have further entered into a letter agreement which further defined their relationship whereby Formosa was to supply certain quantities of Resin on the terms and conditions mentioned therein. Chauhan had again executed personal guarantee dated 18th March, 1994. Dues remained unpaid. On February 20,1995 Formosa filed a suit against KOA and Chauhan. Both were duly served but they failed to file response and a default judgment was given. Both filed joint motion for new trial. Motion of KOA was disallowed and Chauhan s was allowed. Chauhan disputed the claim and also filed a counter-claim. Counter-claim of Chauhan was separated and his objections were dismissed and a decree was passed. Appeal filed befo