A. L. Vaidya, J.—The present appeal has been admitted on the following substantial questions of law :

1. Whether the disputed mortgage deed is valid and binding and the securities were impaired ?

2. Whether the guarantors are liable for the payment of the debt and whether the courts below have correctly interpreted the provisions of the Contract Act in the facts and circumstances of the case ? The plaintiff bank filed a suit against the defendants for recovery of Rs. 41,019.50 on account of principal and interest of the short term agricultural loan advanced by the bank in favour of defendant No. 1 Shri Mehar Chand.

2. A loan to the tune of Rs. 30,700 was sanctioned by the plaintiff in favour of defendant No. 1 on latters submitting an application in this behalf. As per case of the plaintiff, defendant No. 1 had agreed to mortgage his land with the plaintiff and had also agreed to hypothecate the potato crops which he was to grow on the land after taking the said loan. The defendant No. 2 Rachhpal Singh and one Shri Charan Bass, predecessors of defendants 3 to 6 stood guarantors for the repayment of loan which was taken by the defendant No. 1. The defendant No. 1 executed a dem