JUDGMENT - H.D. PATEL, J.:---The aforesaid two appeals arise from a common judgment and, therefore, they are heard and disposed of together.

2. Two Civil Suits were filed by the appellant Bank against the same set of respondents. They were registered as Special Civil Suit No. 167/79 and 168/79 . The first respondent in either of the two suits is a partnership firm dealing in the business of manufacturing aromatics and allied chemical having its factory at Hingna Road, Nagpur. The respondent Nos. 2 to 6 are the partners of the firm. The respondent No. 2 is the Managing Partner of the firm.

3. The first respondent approached the appellant Bank for financial assistance upto a limit of one lakh for erection of the factory and for purchase and installation of machinery. After due scrutiny and verification of the requirements of the first respondent, sanctioned a term loan of Rs. 30,000/- against the equitable mortgage of the plot and building and Rs. 70,000/- against the hypothecation of machinery on 10-8-1974. The first respondent and respondent Nos. 2 to 6 executed a demand promissory note agreeing to pay jointly and severally a sum of Rs. 70,000/- with interest at 4 per cent over and

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