S.B. Sinha, J.

This first appeal is directed against a judgment and decree dated 15.12.1986 passed by Sri Yogendra Prasad, 2nd Additional Subordinate Judge, Jamshedpur in Money Suit No. 76/56 of 1983-85, whereby and whereunder the said learned court decreed the suit as against the defendant nos. 1 and 3 but dismissed the same as against the defendant no. 2.

2. In view of the points involved in this appeal, it is not necessary to state the facts of the matter in great details.

3. Suffice it to say that admittedly the appellant granted a loan for a sum of Rs. 34,000/- to the defendant no. 1 who agreed to re-pay the same amount with interest @ 11 percent per annum on monthly rent on demand, repayable in 24th monthly instalment of Rs.1500/-

4. Admittedly, the defendant no. 1 was to purchase a trekker out of the aforementioned amount of loan and the defendant no.2 stood as guarantor of the defendant no. 1 in respect of the loan. The defendant no. 1 purchased a trekker and the said trekker was also hypothecated and the defendant nos. 1 and 2 executed a term loan agreement of hypothecation of the said vehicle bearing registration no. BHX 7431. The defendant no.2 also deposited his