( 1 ) THIS is an appeal under Sec. 96 C. P. C. filed by the original plaintiff, challenging the judgment and decree of the dismissal of its suit, viz. , civil Suit No. 2173 of 1976, passed by the City Civil Court, Ahmedabad. The plaintiff had filed the suit against the defendants for a sum of Rs. 13,586. 75 together with costs and interest.

( 2 ) THE plaintiff averred that the first defendant-first respondent was a person who had suffered financial hardship on account of communal riots which broke out in the city of Ahmedabad in September 6, 1969, and therefore, requested the plaintiff-bank to extend to him credit facilities by way of a clean loan to continue his business activities. Accordingly, the plaintiff-bank sanctioned a loan of rs. 15,000/- and paid that sum to him on 5th December 1969. The first defendant at that time executed a demand promissory note for the said amount, an agreement of hypothecation and other documents is favour of the plaintiff-bank, and the second defendant stood as a surety and/or guarantor for the liability of the first defendant. The second defendant, therefore, executed on the same day, i. e. , 5th December 1969 a letter of guarantee