1. UCO Bank as appellant has preferred this appeal challenging decree of dismissal passed by the learned Civil Judge, Senior Division, Hailakandi on 18.6.2004 in Title Suit No. 37 of 1999.

2. The Regional office of the UCO Bank (shown as United Commercial Bank, Silchar) instituted Title Suit No.37 of 1999 in the court of the learned Civil Judge at Hailakandi stating that on receipt of application for loan from defendant No. 1, M/s. Choudhury Rice Mills owned by Md. Abdul Rahim Choudhury for loan of Rs.2,21,000, the plaintiff bank agreed to sanction Rs.1,93,000 on condition to produce suitable financially sound guarantor undertaking to repay the loan money subject to terms and conditions. Accordingly, an agreement was executed by defendant No. 1 with the plaintiff relating to term loan on 12.10.1989 and a deed of hypothetication of plant and machinery was also executed on the same date to secure the loan. The defendant No. 1 executed receipt documents in favour of the plaintiff. Defendant No. 2 being a guarantor also executed necessary documents. The aforesaid loan was supposed to be repaid on monthly installments within 7 years with a moratorium of six months and the equated money i

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