R.L.Khurana, J. - (1.)- The plaintiff-bank has directed the present Regular First Appeal against the judgment and decree dated 30.9.1986 of the learned single Judge, passed in Civil Suit No. 84 of 1985.
(2.)Defendant No. 1 is a sole proprietorship firm of which the defendant No. 2 is the proprietor. A cash credit limit of Rs. 1,00,000. as working capital for setting up a thresher, sheller and Chhak is was sanctioned in favour of .defendants No. 1 and 2 by the plaintiff. The amount of cash credit limit was repayable alongwith interest at the rate of 12.5% per annum with quarterly rests. Defendant No. 3 stood as a guarantor for defendants No. 1 and 2. The facility was availed of by defendants No. 1 and 2. They, however, failed to repay the same, as per terms and conditions agreed upon between the parties. After adjusting the various amounts received from the defendants from time to time, a sum of Rs. 1,43,185.53 P. towards principal and interest upto 26.9.1985 was due from the defendants.
(3.)The defendants No. 1 and 2 were also granted a medium term loan of Rs. 1,00,000 by the plaintiff. The loan carried interest at the rate of 12.5% per annum with quarterly rests. Defendant No. 3 stood as a guarantor for the repayment of the loan amount as well. The defendants failed to repay the loan amount and the interest accrued thereon, as per the terms and conditions of the loan. After adjusting the amounts received from time to time, a sum of Rs. 98,244.50 P. towards principal and interest as on 26.9.1985 was due from the defendants.