Mr. Justice S.C. Datta, President—This appeal is at the instance of United Commercial Bank, Amta Branch (for short Bank) and is directed against the order dated 31.7.1998 passed by DF, Howrah in Case No. 135/94. By the impugned judgment and order the claim of the complainant was allowed directing the present appellant to make refund of the amount realised by it by way of encashment of National Savings Certificates pledged with the Bank.

2. What happened in this case is that respondent-2 Hassan Ali Mallick having approached the Bank for loan for the purpose of purchasing 3-Wheelers Auto Rickshaw the latter sanctioned and disbursed a loan of Rs. 29,800/- to him on 5.8.1989 and respondent-1 stood as guarantor and deposited three National Savings Certificates for Rs. 5,000/-, Rs. 5,000/- and Rs. 10,000/- respectively as security for the loan amount. Respondent-2 made a cavenant to repay the loan amount with interest @ 9.5% p.a. by equal monthly instalments of Rs. 700/-. According to the complainant, the liability of the guarantor was co-extensive with that of the borrower and the guarantor agreed to pay on demand of the moneys due to the Bank in the event of borrower’s failure to p