Mr. Justice A.L. Bahri, President—In mis complaint, the complainant Morinda Cooperative Sugars Mills Limited, Morinda (hereinafter called’ the Mill’) claims a sum of Rs. 9,70,758/- from the opposite parties — the State Bank of Patiala, Morinda Branch and Head Office, Patiala (hereinafter called ‘the bank’). On the aforesaid amount, the claimant also claims interest at the rate of 18 per cent from the date of filing of the complaint till realisation. He also prayed for costs. After the parties produced pleadings, an opportunity was afforded to them to produce evidence. Some documents were produced. Sub-sequently, the Counsel for the parties stated that on the admitted pleadings and documents produced, the case may be disposed of. It was so ordered on March 1, 1995.

2. Mostly, the facts are admitted, hence they are summarised from the pleadings, as well as documents relied upon. The Mill stood as guarantor for re-payment of the loan advanced by the bank to several agriculturists. Some of the agriculturists took loan of Rs. 7500/- on 12% per annum interest and others Rs. 10,000/- at the rate of 13.5% per annum interest. The amount of loan was disbursed to the agriculturists throug