( 1 ) THE appeal arises out of the suit in O. S. No. 322 of 1983 on the file of the Additional Chief Judge, City Civil Court, Hyderabad. The plaintiff is the appellant. The suit was filed for recovery of Rs. 3,00,067-40 Ps.

( 2 ) THE averments of the plaint in brief are as follows :-The defendant No. 1 is a partnership firm and defendants 2 to 11 are the partners. The first defendant obtained Documentary Bills purchase facility for the business up to a limit of Rs. 2,50,000. 00 in the year 1971 and executed promissory notes, a letter of continuity and an Agreement for Bills purchase facility as Collateral Security for the repayment of amounts due to the plaintiff bank. The Bills Purchase facility was renewed from time to time. In the course of transactions between the plaintiff and the defendants, the branch office at Madras of the plaintiff bank returned six sets of documents to the plaintiff bank reporting that they were dishonoured by the Drawees (Purchasers) when presented for payment. After the six bills were returned dishonoured, the plaintiff bank addressed a letter dated 25/10/1980 to the defendants by registered post informing them that the abovementioned bills totalling t

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