1. This is a claim by a company in liquidation for the balance of the kuri prize money drawn by the 1st respondent. The prize money was paid on 23-4-70 when the 1st respondent, along with the second, executed a promissory note for the amount in favour of the company, and also an agreement whereunder the 2nd respondent, as surety, guaranteed repayment. The Ist respondent also executed a receipt for the amount. The claim is based on the promissory note, the original consideration and the contract of guarantee.

2. The first respondent has been examined; he admits the liability, his only case being that he is entitled to be discharged under S.3 of the Kerala Debt Relief Act, 1977. Ext. Al report filed by the local Inspector attached to the Liquidator's office supports this case. The annual income of the 1st respondent is estimated to be only Rs. 250/-. The claim is also for an amount below Rs. 3000/-. The first respondent is thus admittedly entitled to discharge.

3. The 2nd respondent has raised the following plea in paragraph (3) of his counter affidavit:

"The first respondent executed a Promissory note on 23 41970 in favour of the company to which I was a surety. The claim u