( 1 ). This is a suit filed by the plaintiff against the defendants for recovery of Rs. 5,24,734. 01/- with costs and interest @ 18% per annum.

( 2 ). Initially the present suit was filed by New Bank of India. Thereafter the said bank was transferred to and vested in Punjab National Bank under Amalgamation and Transfer of Undertaking Scheme w. e. f. 4th September, 1993.

( 3 ) BRIEFLY stated the facts of the present case are that the defendant No. 1 which is a private limited company has had dealings with the plaintiff Bank as a principal debtor. Defendants 2, 3, 4 and 5 had been its Managing Director and/or directors and they became guarantors for the discharge of the liabilities of defendant no. 1. Defendant No. 6 is a private limited company to whom the defendant no. 1 wrongly transferred by lease or otherwise their machinery etc. hypothecated to the plaintiff bank without its permission or consent.

( 4 ). The defendant No. 1 had been availing various credit facilities from the plaintiff bank at its Branch at Old Faridabad from time to time by drawing diverse advances and offering various securities. As per letter dated 5th April, 1972 the plaintiff Bank sanctioned a