( 1 ) THIS is a suit for recovery of Rs. 3,29,193. 61 p. The case of the plaintiff, in brief, is that the defendant on April 28, 1976, had requested the plaintiff s Branch at Faridabad to sanction Cash Credit Facility (Pledge) to the limit of Rs. 2,00,000. 00 and on the same date, the defendant had executed by way of collateral security a demand promissory note for the said amount and continuing security and agreement of pledge of goods. The said Cash Credit Facility was sanctioned and it was agreed that the defendant shall pay interest @ 7% per annum over the bank rate with a minimum of 16% per annum. It is the case of the plaintiff that on August 12, 1977, the defendant executed acknowledgment of balance due on that date to the tune of Rs. 2,03,441. 40 p. and as defendant still failed to clear the debit a letter dated August 4,1980 was issued by the plaintiff to the defendant for paying the amount due which the defendant failed to pay and hence, the present suit has been filed. It is also pleaded in the plaint that the plaintiff has become entitled to sell the goods pledged with the plaintiff-bank.

( 2 ) THE defendant has contested the suit and has taken certain prelim