J.V.GUPTA, J.

1. The plaintiff-appellant Bank filed the suit for recovery of Rs. 71,500.51 against the principal debtors as well as against the guarantors, i.e., the sureties Yogeshwar Kant Wadhera and Jai Gopal Mehra. The trial Court decreed the plaintiffs suit against both the principal debtors as well as against the sureties. Aggrieved against the judgement and decree of the trial Court, the sureties filed the appeal and the learned District Judge relying upon the Single Bench judgement of this court in State Bank of India V/s. M/s. Quality Bread Factory, Batala, AIR 1983 Punj and Har 244, came to the conclusion that if it was proved that the goods hypothecated by defendants 1 to 3 with the plaintiff were lost due to the negligence of the plaintiff, a finding will have to be recorded that the liability of the guarantors was discharged. Finally, their appeal was accepted and qua them the suit was dismissed.

It would be pertinent to note here, in brief, that in the said Single Bench decision of this Court, it was held that if the loan has been advanced on the basis of security, the surety stands discharged to the extent of the value of the security, if the creditor loses o