( 1 ) THIS appeal is filed against the decree and judgment of the Principal Subordinate judge, Eluru, in O. S. No. 100/92 passed on 26-3-1996. The defendants are the appellants. The plaintiff-State Bank of India, vatluru Branch, West Godavari District, filed the suit for recovery of Rs. 3,77,751/-

( 2 ) THE facts in brief are as follows: the 1st defendant is the proprietory concern, 2nd defendant is the guarantor for the loan transaction between the plaintiff-Bank and the 1st and 2nd defendants. An amount of Rs. 1. 50 lakhs was allowed as cash Credit Mundy by the plaintiff-Bank to the defendants in 1986. The defendants executed various security documents and furnished immovable property as collateral security by creating equitable mortgage. They have also agreed to pay interest at 17. 5% per annum with quarterly rests. In 1987, the defendants approached the plaintiff-Bank for enhancement of the limit by another sum of Rs. 50,000/- and the plaintiff-Bank enhanced the limit by another sum of Rs. 50,000/ -. Again on 18-5-1987 another loan of Rs. 60,000/- was given. Thus, the defendants availed a total limit of Rs. 2,60,000/- and the defendants had executed, on 1-8-1989