D. G. KARNIK, J.

This appeal is directed against the judgment and decree dated 12th January. 2006, passed by the 1st Ad-hoc Additional District Judge, Panaji.

2. Heard learned Additional Government Advocate for the appellant and learned Counsel for respondent Nos.1 and 2. None present for respondent No.3 - Reserve Bank of India.

3. Appellant is the original defendant No.1. respondent No. 1 is the original plaintiff and respondent Nos.2 and 3 are the original defendants No.2 and 3 respectively. The appellant-State of Goa, being desirous of raising a loan of Rs.9.5 crores, appointed respondent NO.3-the Reserve Bank of India (For short the RBI) as its manager to the issue. A press communique was issued by the State of Goa about its decision to float the issue called as "Goa State Development Loan, 2003", carrying 13.50% interest. The appellant and the respondent No.3 appointed designated branches of the State Bank of India at Panaji and Margao as their agent where the applications for the loan along with the money could be deposited. In addition to the designated branches of the State Bank of India (For short the SBI) the applications could also be deposited in the designated Br