This appeal is directed against the judgment and decree dated 15.04.2002 in OS No.90 of 1996 on the file of the Court of I Senior Civil Judge, City Civil Courts, Hyderabad, wherein the suit filed by the appellant herein for recovery of a sum of Rs.3,48,533/- was dismissed with costs.

2. The appellant filed the suit with the following averments: On application of the 2nd defendant, who is the Managing partner of first defendant, term loan of Rs.2,30,000/- was sanctioned by the plaintiff bank for business purpose, on hypothecation of stocks and machinery and personal guarantees offered by the defendants 2 to 8 apart from mortgage of the plaint schedule property belonging to 8th defendant. The defendants have executed general agreement for grant of medium term advance on 31.3.1984, ancillary agreement dated 31.3.1985, and guarantee agreement for small industrial advances dated 31.3.1984. That apart, 8th defendant also created equitable mortgage in respect of his house property as collateral security for the loan. The defendants also executed a letter of confirmation of balance on 6.1.1988, 30.09.1989 and revival letters on 30.09.1986 and 30.08.1989. In spite of several dema