The liability of the surety is co-extensive with that of the principal debtor, and the creditor has the right to recover the amount straightway from the surety.

( 1 ) THIS is a revision by the decree-holder against the order by which the application of judgment-debtor No. 3 Rajesh Kumar Agarwal (hereinafter to be referred to as J. D.) raising two-fold objections has been allowed.

( 2 ) THE decree-holder is State Bank of India. It has obtained money decree in Civil Suit No. 1-B of 1992 on 30-4-1997 against Smt. Goutmi Devi Gupta as Proprietor of Jyoti Dal Mill and also against the J. D. He was the surety of the principal borrower in the loan taken by her from this Bank. The liability of the judgment-debtors under the decree is "joint and several". The principal amount payable under this decree is Rs. 1,95,314. 00 and the interest payable thereon is 12 per cent per annum from 16-12-1991. It is also stated in the decree that decree-holder would be free to sell the hypothecated goods and this decree would be the first charge on the hypothecated property. There is no direction that the decree-holder would first proceed to recover the decretal amount from the hypothecated property and then against the properties of the J. D.

( 3 ) THE J. D. had current account No. 1/169 in the plaintiff Bank in the name of "classic Cables" of which he was the proprietor. On 29-3-1996 the J. D. had executed an agreement in favour of the Bank in Form A and had pledged his two Fixed Deposit Receipts (FDRs) of Rs. 50,000/- each. On 17-8-1998 Arunima Agarwal daughter of the J. D. had executed an agreement in favour of the Bank in Form A-2 and had pledged two FDRs of the total amount of Rs. 3,51,041. 00. The language of both the agreements is almost identical. The relevant clause of the agreement executed by Arunima Agarwal is quoted in extenso as under :-"in consideration of the State Bank of India (hereinafter called "the Bank" at my/our request granting certain banking facilities in the nature of overdraft accommodation or otherwise to here state the name (s) of the borrower (s ). (hereinafter called "the Borrower (s)") at their office and/or elsewhere I/we agree to deposit with the Bank the securities/shares/life insurance policies mentioned in Schedule hereto (hereinafter referred to as the said policies/securities/shares) as security for the due performance by the Borrower (s) or any of them of the terms subject to which the aforesaid banking facilities may be granted and for repayment on demand to the Bank of all and every sum or sums of money which shall for the time being be owing to the Bank on any account from the Borrower (s) or any of them for loans cash credits advances, overdrafts or other banking accommodation or for any other money for which the Borrower (s) or any of them may be liable on any account to the Bank whatsoever with all interests, commission, discount and banking charges including legal charges occasioned by or incidental to the said indebtedness to the bank or by or to the enforcement of any security held by the bank I/we confirm and agree that such security shall also be available as a security for repayment to the Bank for any amount which shall for the time being be owing to the Bank on any account from the Borrower (s) or any of them jointly with any other person or, persons or firm or company, for loans, cash credits, advances, overdrafts or other banking accommodation or for any other money for which the Borrower (s) or any of them may be liable jointly with others as aforesaid on any account whatsoever with all interest commission discount and banking charges including legal charges occasioned by or incidental to the enforcement of any security held by the Bank. "

( 4 ) THE J. P. had one more account with the plaintiff Bank in the name of "j. S. Industries" of which he was a partner. By letter dated 12-7-2000 the Bank informed the J. D. of the appropriation and adjustment made by it. According to this letter the total amount payable under the four FDRs including interest was Rs. 5,93,440/ -. The liability in respect of the account of Jyoti Dal Mill was Rs. 3,51,