B. H. MARLAPALLE, J.

( 1 ) M/s Ajay Industry, A- 14, M. I. D. C. Area, Wardha, through its proprietor shri Vijay Wamanrao Choudhari, was sanctioned cash credit hypothecation limit of Rs. 95,000/- on 30-1- 1986 by the Central Bank of India, Branch Office at M. I. D. C. Area, Wardha and the proprietor had executed a demand promissory note for the said amount in favour of the Bank and agreed to pay interest at the rate of 14% per annum with quarterly rests and by another letter, the proprietor had accepted the terms and conditions of the loan facility. He had also executed a letter of continuity and agreement of hypothecation in favour of the Bank. S/shri ajabrao S. Raut and Shankar Hari Nikam were the guarantors for the said cash credit granted by the bank. The said limit was enhanced by the Bank by rs. 65,000/- at the request of the proprietor on 13-4-1987 and for the same, he also executed a demand promissory note of Rs. 1,60,000/-, letter of continuity, letter of agreement of interest, letter of stock statement, agreement of hypothecation and guarantee bonds of the earlier guarantors, namely, S/shri Ajabrao S. Raut and shankar Hari Nikam. The said loan was also sanctioned