J U D G M E N T

The suit for money filed by the Bank on a loan account, was decreed by the trial court. The third defendant-guarantor is in appeal.

2. On 27.06.1995, the first defendant availed a temporary overdraft of ` 5 lakhs from the plaintiff- Bank. The third defendant stood as guarantor for the facility. She also created equitable mortgage of immovable property to secure the liability. Subsequently, on 16.08.1995, the first defendant availed a secured loan of ` 2,25,000/- and closed the overdraft facility. According to the plaintiff, the guarantee of the third defendant continued and in addition, the second defendant who is the husband of the third defendant also stood as a guarantor. Since repayment was defaulted, the suit was filed.

3. The third defendant denied the plaintiff's contention that she was a guarantor to the loan availed by the first defendant on 16.08.1995. According to her, she stood as a guarantor and created equitable mortgage only to secure the overdraft facility availed on 27.06.1995. After closure of the said facility on 16.08.1995, no fresh documents were executed by her guaranteeing the subsequent loan of ` 2,25,000/- availed by the first defendant on 16.0