1934 Present: Garvin S.P.J. and Poyser J.

AMERESINGHE v. PERERA.

338-D. C. Negombo, 5,259.

Surety-Party to a mortgage bond-Partial loss of security through act of creditor-Surety's right to have his liability reduced.

Where a person has bound himself as surety under a mortgage bond and where, by the act of the creditor, a part of the securities hypothecated for the debt have been lost the surety is entitled to claim that his liability be reduced by the amount which might have been realized by the sale of the securities so lost.

APPEAL from a judgment of the District Judge of Negombo.

N. E. Weerasooria (with him Aluwihare), for second defendant, appellant.

C. V. Ranawake, for plaintiff, respondent.

Cur. adv. vult.

January 26, 1934. GARVIN S.P.J.-

By a bond bearing No. 5,612 dated July 18, 1928, the first defendant as principal and the second and third defendants as sureties bound themselves to pay to the plaintiff and one Cecilia Fernando or either of them the sum of Rs. 1,750 with interest at 13 1/2 per cent, per annum. For securing the payment of the said sum the first defendant in and by the said bond hypothecated three parcels