( 1 ) THIS appeal is by the plaintiff in O. S. No. 3518/1982 on the file of the City Civil Court, Bangalore. The plaintiff-Bank filed the suit on 2-12-1982 against the borrower (first defendant) and the guarantor (second defendant) for recovery of Rs. 3,20,095-95 P. with interest at 16. 25% per annum from the date of suit till the date of realisation with costs and for a direction for sale of the suit schedule moveable properties for realisation of the decretal amount and for a further direction that the balance if any to be recovered from the defendants personally. For convenience, the parties will be referred to by their ranks in the trial Court.

( 2 ) THE plaint averments, briefly are: On the request of the defendants, the Bank agreed to give a term loan of Rs. 3,00,000/- against the hypothecation of moveables mentioned in the plaint schedule to the first defendant; The first defendant entered into an agreement with the plaintiff on 5-7-1978 containing the terms of the said loan and in pursuance of it, as and when required, by the first defendant, the plaintiff made advance to the first defendant. The principal amount had to be repaid on or before 1983 in quarterl