( 1 ) THE plaintiff, Syndicate Bank, has filed this suit for recovery of Rs. 33,39,026. 75p. The case as set up in the plaint is that the bank amongst various other facilities sanctioned overdraft limit of Rs. 10,00,000. 00 to defendant 1 company against hypothecation of fiat cars, jeeps and commercial vehicles. The defendants, in consideration of the said overdraft limit, executed a demand promissory note dated 2- 2-1972 for said sum of Rs. 10,00,000. 00 carrying interest at 10% per annum for the time being. The defendants also executed further documents as set out in the plaint and availed of the said overdraft limits of Rs. 10,00,000. 00. The defendants acknowledged their liabilities in writing to the extent of Rs. 11,83. 327. 95 p. as on 31st of December, 1974 by acknowledgment of debt dated 31st of January, 1975. It is further claimed that in spite of acknowledgment of liability the defendants failed to deposit money in the said over draft account and when called upon to deposit the sale proceeds of the hypothecated vehicles, the defendants stated that the same had been utilised elsewhere and they were not in a position to pay the same to the bank. By Resolution