K. Ramamoorthy, J.

( 1 ) THE State Bank of India through its Chandni Chowk Branch, Delhi, has filed the suit against four defendants for recovery of Rs. 4,25,417. 55.

( 2 ) THE case of the plaintiff is that in 1973 the first defendant, through its Directors defendants 2 and 4, approached the plaintiff and requested grant of loan and wanted facilities upto limit of Rs. 4,00,000. 00 for the purpose of business of the first defendant Company. On 15. 01. 1973 the following documents were executed by the defendants:

A) Ex. P-2, Promissory note dated 15. 01. 1973 for Rs. 4,00,000. 00 agreeing to pay interest @ Rupees 1th per cent over the State Bank Advance Rate minimum of Nine and 3/4lh per cent per annum with monthly rests.

B) Ex. P-3 a letter from the first defendant dispensing with a notice of dishonour in term of Section 98 (a) of the Negotiable Instruments Act, 1891.

C) Ex. P-4 is the guarantee form executed by the second defendant Mr. Jawahar Lal Barman, the third defendant, Mr. Prem Chand Kashyap and the fourth defendant, Mrs. Krishna Barman, wife of the first defendant. These documents clearly prove the transactions between the parties.

( 3 ) DEFENDANTS wanted Cash Credit on security and the following documents were executed on 19. 01. 1973:

A) Ex. P-6 is the agreement for Cash Credit on security of pledge of goods, produce and Merchandise.

B) Ex. P-8 is the promissory note dated 19. 01. 1973 for Rs. 2,00,000. 00 with interest half percent above the State Bank advance rate minimum nine per cent per annum.

C) Ex. P-14 is the letter for dispensing with a notice of dishonour in terms of Section 98 (a) of the Negotiable Instruments Act, 1891.

D) Ex. P-9 is the Guarantee form executed by the second defendant Mr. Jawahar Lal Barman, the third defendant Mr. Prem Chand Kashyap and the fourth defendant, Mrs. Krishna Barman, wife of the first defendant. These documents clearly prove the transactions between the parties.

E) Ex. P-10 is the agreement for Cash Credit on Security of Pledge of Goods, Produce and Merchandise for payment of Rs. 4,00,000. 00.

( 4 ) ACCORDING to the plaintiff the first defendant availed of the facilities and necessary entries are made in the books of accounts. The defendants have committed default in paying the balance as on the 9th of the April 1975 to the tune of Rs. 5,82,846. 95 as noted in Exhibit P-15. The first defendant admitted the balance of Rs. 1,31,908. 44 in Cash Credit Account as on 31. 12. 1973 under Exhibit P-16, the defendants confirmed the balance of Rs. 5,00,313. 12 as on 31-12-1973 in the other accounts. Under Exhibit P-12, the defendants wanted some accommodation for advance and executed an agreement.

( 5 ) IN para 10, the plaintiff stated thus: That the balance due from the First defendant s account aforesaid under the aforesaid Cash Credit Account together with interest as stated hereinabove amounts to Rs. 4,25,417. 55. Details of the said account excluding interest for the period 09. 04. 1975 to 11. 01. 1976 are maintained in the books of account of the plaintiff. Ex. "b" hereto is a true and correct copy of the relevant entries from the ledge from 30. 12. 1973, when the balance was confirmed, upto 01. 01. 1976 duly certified under the Bankers Book Evidence Act, 1891, and it is prayed that the same may be read as part and parcel of this plaint.

( 6 ) IN para 12, the plaintiff refers to the mortgage of immovable property. The plaintiff ultimately claims a decree for Rs. 4,25,417. 55 with interest @ 18% per annum and, the plaintiff prays for a mortgage decree.

( 7 ) THE defendants have filed written statement contending, inter alia, that the plaintiff; acted in an arbitrary fashion and caused loss to the defendants. Without the knowledge of the defendants the plaintiff locked the premises preventing the defendants from carrying on business and ultimately the defendants had to close down the business. The plaintiff filed its replication. The plaintiff have Filed the documents which are exhib

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