Official Liquidator. In cross examination, the fourth respondent admitted that he had signed Exs.A1, 2 and 3 which are the promissory note, agreement of guarantee and the surety form; and that in Ex.A3 he had agreed that, in case of default by the prized bidder, he would pay the entire balance with interest, legal and incidental charges incurred by the Company or any other charges agreed between the Company and the prized bidder. He reiterated that the first respondent had informed him that he would pay the entire amount. The fourth respondent, however, admitted that the first respondent had shown no interest in payment of the entire dues. From the affidavit filed in lieu of chief examination, and the documents marked as Exs.A1 to A16, it is evident that the first respondent has not paid the entire chit amount; he is due Rs.1,45,000/- to the Company under Liquidation; and the Company is entitled to recover the said amount along with interest at 12% per annum from 31.05.2000 till the date of realization. It is also evident that respondents 2 to 4 stood as sureties for the prized chit of the first respondent and, as the first respondent has defaulted in making payment, they are also jointly and severally liable to pay the said amount due, to the Company under Liquidation, from the first respondent.
