JUDGMENT

Cunliffe, J - This is a Letters Patent appeal. The Myingyan Municipal Committee, appellants before this Court sued the respondent, Maung Po Nyun, in the Township Court of Myingyan, on a guarantee mortgage bond for the sum of Rs. 760-9-0. The Township Judge gave them a decree for Rs. 314-10-0. On appeal to the District Court the judgment was set aside and a mortgage decree for the full amount claimed was substituted. On appeal to this Court it was held that the guarantee in question was a "continuing guarantee" within the meaning of Section 130, Contract Act, and that such a guarantee could be and in fact was recalled by the respondent. The appeal was, therefore, allowed judgment being given for the respondent in both the lower Courts.

2. To turn to the particular facts, the Municipal Committee had appointed into their service a Tax Collector by name Maung Ba Khin. They were desirious of obtaining a bond for his good behaviour. Such a bond was executed by Maung Po Nyun. It recites, inter alia, that

whore as Maung Ba Khin has been appointed a whole time Tax Collector, the property described in the schedule is mortgaged for the purpose of in parts securing and indemnifying the m