1. This appeal is directed against judgment and decree rendered by the learned Civil Judge (S.D.), Jalgaon, in a money suit (Spl.C.S.No.3/1987).

2. The appellants are original defendant Nos.l to 4. The Respondent No.1 is plaintiff-bank and

Respondent No.2 is the guarantor for loans, which were allegedly availed by the appellants.

3. There is no dispute about the fact that the appellant No.1 is a registered partnership firm and the appellant Nos.2 to 4 are partners thereof. The Respondent No.1 is a Bank duly constituted under the Banking Companies Act.

4. Briefly stated, case of the plaintiff bank was that the defendant Nos.l to 4/appellants sought loans. The loan proposals were considered and as per sanction of the competent Officer, the following loans were sanctioned to them.

.(a) Cash Credit Pledge of Rs.2,00,000/- (Rupees two lacs).

.(b) B.P. limit of Rs.1,00,000/- (Rupees one lac).

.(c) Cash Credit Hypothecation loan of Rs.4,00,000/- (Rupees four lacs).

.(d) Term loan for construction of building Rs.1,00,000/-.

.(e) Term loan for purchase of machinery of Rs.1,50,000/- (Rupees one lac fifty thousand).

A total amount of Rs.9,50,000/- (Rupees Nine lacs fifty thous