VAZIFDAR S.J., J.: - This suit is filed to recover a sum of Rs. 5,67,332.51/- together with interest thereon at the rate of 19.5% p.a. and to enforce the hypothecation and/ or charge created by the defendants in favour of the plaintiffs to secure the repayment thereof. Defendant No.1 is the borrower. Defendant No.2 who is a director of defendant No. 1 is sued as a guarantor. The hypothecation/charge is not pressed.

The plaintiffs case:

2. In or about November 1974 the plaintiff granted defendant No. 1 Demand Cash Credit facility upto a limit of Rs. 2,50,000/-. In respect thereof defendant No.1 executed various documents including a Demand Promissory Note, a Deed of Hypothecation and a letter of Lien and Set off all dated 2811-1974. The same had been tendered and marked in evidence as Exhibits P1, P2 and P3 respectively. The documents were completed in all respects when they were signed by the defendants. In March 1975 the Cash Credit facility was enhanced to Rs. 5 lacs in respect whereof a supplemental deed of hypothecation dated 29-3-1975 was executed by defendant No. 1 extending the hypothecation created under the earlier deed of hypothecation to operate in respect of the increased

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