( 1 ) THIS ia an appeal by Indian Bank against the Judgment and decree of the Additional Subordinate Judge, Tirupati in O. S. No. 264 of 1990.

( 2 ) THE suit is filed for recovery of Rs. 13,41,295-20 Ps. being the principal and interest due on a pronote dated 22-11-1985 executed by the first defendant in favour of the Plaintiff-Bank for a sum of Rupees 3,00,000/- and for costs.

( 3 ) THE averments in brief are that the 1st defendant for purpose of doing business in real estate obtained overdraft facility in the Current Account of a sum of Rupees 3,00,000/- and started availing the facility after executing a pronote on 22-11-1985. He agreed to pay interest at the rate of 7. 5 per cent over the official rate of Reserve Bank of India with a minimum of 17. 5% per annum with quarterly rests. The second defendant was the guarantor. On 31-3-1987 the first defendant renewed the demand promissory note for a sum of Rs. 7,13,402-40 Ps. The first defendant deposited the title deeds of the immovable property as security on 28-4-1988. The defendants have acknowledged the debt in a sum of Rs. 8,67,239. 55 Ps. The Promissory note was also renewed. In spite of reaped demand, the defendant have not

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