( 1 ) THE respondents herein availed an amount of Rs. 25,000/- as term loan sometime in the year 1980. At a later point of time, they also availed another amount of Rs. 50,000/- towards term loan. Both these loans carry interest at the rate of 11. 85% per annum compoundable quarterly. Apart from these loans, the respondents also availed Open Cash Credit (OCC) with a limit of Rs. 75,000/- carrying same rate of interest compoundable quarterly. The loan was sanctioned by the appellant bank on obtaining security, which was given by creating equitable mortgage by deposit of title deeds. In spite of several demands, the loan amounts were not repaid. Therefore, the appellant bank, which is a Nationalized Bank, filed suit being O. S. No. 50 of 1998 on the file of the court of the Subordinate Judge, Vikarabad, for recovery of suit amount in a sum of rs. 3,66,230/ -. The plaintiff/appellant bank also claimed subsequent interest on contractual rate of interest at 11. 85% per annum.

( 2 ) DEFENDANTS 1 and 3 remained ex pane. Defendants 2,4 and 5 filed a common written statement opposing the suit. They, inter alia, contended that Defendant No. 1 is not a registered partnership f