Rajiv Sahai Endlaw, J.

The counsel for the plaintiff and the counsel for the defendant no.2 Shri Harbhajan Singh have been heard.

2. The plaintiff instituted this suit for recovery of Rs. 1,20,49,597.24p with interest, jointly and severally from the two defendants, pleading (i) that the plaintiff, vide its letter dated 12th December, 1990 sanctioned and agreed to provide the defendant no.1 lease finance to the extent of Rs. 50,00,000/- for installing the plant, machinery and equipment at Village & P.O. Rail Majra, Tehsil Balachaur, District Nawanshahr, Punjab; (ii) on 12th December, 1990 itself an agreement of lease of the said plant and machinery was executed at New Delhi; (iii) as per the said lease agreement the lease rentals were to be paid in eight years w.e.f. the handing over of the plant and machinery; (iv) that on 21st August, 1991 a supplementary agreement was entered into between the parties where under the equipment worth Rs. 29,64,018/- was leased to the defendant and lease rentals were to commence w.e.f. 21st August, 1991, for a period of eight years i.e. up to 20th August, 1999; (v) the said plant and machinery were installed at the factory aforesaid of the d