1. Defeated plaintiff in O.S.No.611/1992 on the file of the Sub Court, North Paravur is the appellant herein. The suit was filed for recovery of an amount on the basis of a chitty transaction entered into between the plaintiff chitty company, having its registered office at Bangalore and branches in other places including one at Methala within the jurisdiction of Sub Court, North Paravur are the defendants.

2. According to the plaintiff, the first defendant was a subscriber to the chitty having sala of Rs.72,000/- and the chitty was started from its Bangalore branch from 27.04.1988 and they joined the chitty with No.166 and the first defendant bid the chitty on the 10th installment on 02.03.1989 and received the amount and executed Ext.A1 agreement jointly on 27.05.1989, whereby the amount payable as on that day was fixed as Rs.20,100/- and this has to be paid in 67 installments at the rate of Rs.300/- per month starting from 02.07.1989 onwards. It is also agreed that in default, they have to pay interest at the rate of 12% per annum. The defendants 2 and 3 are the guarantors and they also joined the agreement, undertaking to pay the amount. The first defendant thereafter