S.P.GARG, J.

1. The present suit has been filed by M/S Canbank Financial Services Ltd.(hereinafter ‘the plaintiff’) against Gitanjali Motors Ltd.(D-1), Asha Ram (D-2), S.S.Bedi (D-3), Moksh Bedi (D-4), Col.K.S.Malik(D-5), Pramod Gulati (D-6) and Eicher Motors Ltd. (D7) for recovery Rs.2,58,38,152.81. Presently the suit is contested by D-7 only.

2. Briefly stated the facts of the case as reflected in the plaint are that on 10.05.1991, D-1 applied to the plaintiff for sanction of lease finances to the tune of Rs.200 lacs for 26 buses and 30 trucks manufactured by D-7. The plaintiff considered the application and communicated their sanction on the terms contained in the letter dated 18.07.1991 (Ex.PW-1/2). Sanction terms dated 18.07.1991 were modified on 20.08.1991 (Ex.PW-1/3). D-2 to 6 accorded approval to the terms and conditions contained in the letter dated 18.07.1991 and authorized defendant No.3 to negotiate and sign the documents for and on behalf of defendant No.1. The lease agreement was executed on 18.07.1991 on behalf of defendant No.1. It contained the terms of the grant of lease finances. Defendant No.1 executed letter of indemnity (Ex.PW-1/8) on 19.07.1991. D-2 t