JUDGMENT

K.G. Balakrishnan, J.-The plaintiff appellant filed two suits against the respondents. First respondent in both the suits is a partnership firm engaged in engineering works. Respondent Nos. 2 to 4 are its partners. In the first suit, namely, O.S. No. 1921/80 which was filed for recovery of Rs. 59,775.95 with interest thereon, the plaintiff alleged that for the purpose of expansion of industry of the respondents, a loan of Rs. 40,000/- was sanctioned in favour of the respondents on 5-12-1974. The loan was to be re-paid after 9 months in instalments. The respondents had also executed the requisite documents in favour of the plaintiff bank. Respondent Nos. 2 and 3 in their written statement admitted that the respondents had borrowed Rs. 40,000/- from the appellant, but they contended that the first respondent firm was dissolved and the fourth respondent took over the entire liability and, therefore, they are not liable for the suit claim. The Trial Court passed the decree only against Respondent-1 and Respondent-4 for the suit claim.

2. The appellant filed a Regular First Appeal No. 632/87 before the High Court and prayed that decree shall be passed against all the respondents