Kuldip Chand Sood, J.—This first appeal arises out of the judgment and decree of learned District Judge, Hamirpur dated January 10,1997 whereby the suit of the appellant Bank, plaintiff before the District Judge, was partly decreed against the respondent-defendant.

2. The facts in brief. Plaintiff Bank is a body corporate established under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its head office at New Delhi. Plaintiff Bank has a Branch at Jahu in Tehsil Bhoranj of District Hamirpur of Himachal Pradesh. Vinod Kumar Chadha, was the Branch Manager of the Jahu Branch of the plaintiff Bank when the suit was filed. He holds general power of attorney on behalf of the plaintiff Bank and was authorised to maintain the present suit.

3. On August 18, 1987, Bhagat Ram, defendant, who died during the pendency of the suit and was substituted by his legal representatives as defendants l(a) to l(c) and respondents No. 1 to 3 in this appeal, approached the plaintiff bank for the grant of term loan of rupees 1,64,000 for the purchase of D.C.M. Toyota Make Truck vide his loan, application of the even date. The plaintiff bank sanctioned a sum of rupees 1,