JUDGMENT :

T. MALLIKARJUNA RAO, J.

1. The Appeal, under Section 96 of the Code of the Civil Procedure, is filed by the Appellant/3rd Defendant challenging the decree and Judgment dated 27.08.2012 in O.S. No. 799 of 2002 passed by the learned III Additional Senior Civil Judge, Vijayawada (for short ‘the trial court’). Respondent No. 1 is the Plaintiff, who filed the suit in O.S. No. 799 of 2002 seeking recovery of Rs.9,11,817/- with subsequent interest on the principal amount of Rs.7,26,000/- from the date of the suit till the date of realisation and for costs. Respondents 2 and 3 are Defendants 1 and 2 in the said suit.

2. It is expedient to refer to the parties as they are initially arrayed in the suit to mitigate any potential confusion and better comprehend the case.

3. The factual matrix, necessary and germane for adjudicating the contentious issues between the parties inter se, may be delineated as follows:

1st Defendant is the firm, and Defendants 2 and 3 are the working partners of the 1st Defendant firm. While so, 2nd Defendant, on behalf of 1st Defendant firm, borrowed Rs.6,00,000/- from the Plaintiff on 01.09.2000 for their business purpose, agreeing to repay the same with int