A guarantor's liability is co-terminus with that of the borrower, allowing lenders to pursue recovery from either party as necessary, even if not all options against the borrower have been exhausted.

JUDGMENT

S. Talapatra, J. - Heard Mr. DR Choudhury, learned senior counsel assisted by Mr. S Sarkar, learned counsel appearing for the petitioner as well as Mr. PK Debnath, learned counsel appearing for the respondent No.2, Tripura Schedule Castes Cooperative Development Corporation Ltd., Agartala. Also heard Mr. D Bhattacharjee, learned GA assisted by Mr. K De, learned Addl. GA appearing for the respondents No. 1, 3, 4, 5 & 6. Despite due notice from this court, none appears for the respondent No.7.

1. The relevant facts which led to filing of this writ petition may be encapsulated at the outset. The petitioner is a Lower Division Clerk (LDC, for short) employed in the Central Training Institute, Sepahijala, Tripura. There is no dispute that when Smt. Rekha Das, the respondent No.7 herein, took a loan from the respondent No.2, the petitioner stood as guarantor against the said loan and the letter of guarantee was duly executed and that is available with the reply filed by the respondent No.2 (Annexure-H to the said reply). The letter of guarantee provides inter alia the following terms and conditions which were agreed by the respondent No.2 and the petitioner:

1. That, the guarantee shall be continuing security of the accommodation granted to the Loanee/Borrower till full repayment of the same.

2. That, in case the Loanee/Borrowers fails to repay consecutive 3 (three) installments, as per schedule of repayment, the Corporation shall be entitled to issue notice to the Loanee/borrower first for depositing the arrears of installments and if the Borrower fails to comply with the said Notice, then the Corporation shall have the right to request the DDO of the Guarantor to recover the said due installments from the salary of the Guarantor.

3. That, in case the Loanee/Borrower fails to reply the entire loan with interest or part thereof, the Guarantor shall be liable to pay the same from his monthly salary bill and the DDO has been authorized accordingly to deduct the due installments/entire outstanding loan with interest in easy installments from the monthly Salary Bill of the Guarantor.

4. That, in case of retirement or death of the Guarantor, the loan amount be deducted out of DCRG payable to my legal heirs.

5. That, this Guarantee shall be applicable to the 'ultimate balance' that become due to the Corporation from the outstanding amount repayable by the Loanee/Borrower, the Corporation shall be entitled to recover the said ultimate balance? of the outstanding loan amount from the Guarantor or his/her legal heirs.

6. That, the guarantee shall be enforceable notwithstanding any change in the name of the Corporation. [Emphasis added]

2. The other part of the recital in the letter of guarantee is not material in the present context.

3. The petitioner has averred that the respondent No.2 has on 15.01.2021 written a letter to the Commandant, Central Training Institute stating that the borrower has failed to pay the instalments consecutively and the total outstanding stands at Rs.2,85,000/- as on 06.12.2017. Having referred to the said letter of guarantee, the said Drawing and Disbursing Officer has been requested to recover the outstanding from the petitioner's salary bills. It has been stated by the petitioner that the DDO has started recovery of the said outstanding from his salary bills. The said action has been challenged by the petitioner.

4. Mr. Choudhury, learned senior counsel appearing for the petitioner has submitted that the primary liability lies with the borrower to satisfy the loan. The guarantor, only in case of the borrower's failure to repay the loan amount, would be responsible for the payment. There had been no action against the borrower but the guarantor (the petitioner herei