S. DASARADHA RAMA REDDI, J.

( 1 ) THE respondent filed O. S. 18/94 on the file of the II Addl. Judge, City civil Court, Hyderabad under Order 37 Rule 3 C. P. C. for recovery of rs. 7,71,512/- together with interest at the rate of 36 percent per annum. The allegations in the plaint are that the petitioner No. 1 who is distributor for m/s. Sunku Auto Limited in Chittor District for sale and distribution of motor vehicles manufactured by them, approached the respondent company with a request to arrange letter of credit of a scheduled bank for Rs. 4,97, 945/- for purchasing five three-wheeler diesel autos and five load carriers for carrying on their business. The 2nd petitioner who is the wife of the 1st petitioner offered her immovable property as collateral security and deposited the title deeds by creating equitable mortgage. The respondent arranged open letter of credit dated 9-7-1992 for the said amount in favour of Sunku Auto limited and an agreement was also entered into between the plaintiff and the first petitioner on 9-7-1992 as per which the 1st petitioner has to pay the plaintiff a sum of Rs. 10,000/- being the 2% of the letter of credit value towards non-refundable service

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