1. A.S. 674/97 is an appeal preferred by the plaintiff, Bank against the judgment and decree passed by the Sub Judge, Nedumangad in O.S.123/96 and the other appeal is filed by the defendants against the very same judgment. The suit is one for realisation of the amount advanced to the first defendant along with the 2nd defendant as guarantor and on non-payment the suit was instituted. The court below found that as far as the first defendant is concerned the suit is barred by limitation and held that there can be a decree against the 2nd defendant by sale of the property equitably mortgaged to the Bank. The plaintiff has come up in appeal regarding the disallowance of a decree against D1 and personal decree against D2 whereas the defendants have come up in appeal contending that when the principal debtor's liability stands discharged no action can be taken against the guarantor or surety and further there is absolute bar of limitation.

2. The Bank, advanced a sum of Rs.27,000/- to the first defendant for the purchase of an auto rickshaw and his mother, the 2nd defendant stood as guarantor and created an equitable mortgage in favour of the Bank. The transaction was in Septem