JUDGMENT :

C.L. Soni, J.

This appeal is against the judgment and decree dated 29.4.1983 passed in Civil Suit No.913 of 1977 by learned Judge, 3rd Court, Ahmedabad.

2. The appellant is the original plaintiff, who had sanctioned loan of Rs. 8,00,000/- in favour of Jahangir Vakil Mill Company Ltd. (defendant No.1) in the month of February 1970. The appellant had also furnished bank guarantee in favour of defendant No.1 to Punjab National Bank for a sum of Rs. 7,00,000/-. Necessary agreements between the appellant and the said mill company were entered into. Loan of Rs. 8 lakhs was disbursed in different instalments. Respondent Nos.1 and 2 (defendant Nos.2 and 3) were Directors of the Mill Company and they executed a deed of guarantee, whereby each of the guarantors agreed to repay the financial assistance paid to Mill Company by the appellant. Loan of Rs. 8 lakhs advanced by the appellant was to be paid by 16 instalments. Loan amount was to be paid in equal half yearly instalments, payable on or before 15th of June or 15th of December every year and the first of such instalments was