Gurusharan Sharma, J. - (1.) One Gulam Murtaza approached Bank of Baroda, branch office at Ramgarh, for financial assistance in his Fireclay business. On 29/1/1983 the Bank sanctioned a cash credit limit of Rs. 20,000.00 to him on execution of necessary documents and on giving security for due repayment of the advance/outstandings to the Bank. Subsequently, on his approach the Bank raised limit of aforesaid cash credit advance to Rs. 30,000.00 with effect from 11/6/1974.
(2.) A Demand Promissory Note for Rs.30,000/- payable together with interest at the rate of 41/2% O.B.R, minimum 12 1/2% per annum with quarterly rests was executed by him alongwith an Agreement of Hypothecation of goods. One Durlabhji Kotecha the guarantor, simultaneously executed a letter of continuing personal guarantee for Rs.30,000.00.
(3.) Under the aforesaid account, Gulam Murtaza availed of the said cash credit facilities advances and made certain part payments thereto from time to time. By letter dated 28-2-1977, both loanee and guarantor while confirming execution of securities by them, acknowledged their respective liability for a sum of Rs. 50,861.22 paise as on that date to the Bank under the aforesaid account.;