1. The plaintiff-bank has claimed a decree for Rs. 2,34,722.05 against defendants Nos. 1 and 2 as principal debtors and defendants Nos. 3 and 4 as guarantors.

2. It is alleged that the plaintiff through its Branch at Kotwali Bazar, Dharamshala, at the behest of defendants Nos. 1 and 2 agreed to make available to them a term loan of Rs.1,96,000/- for purchase of a Tata 1985 Model Chassis and for fabrication of bus body thereupon, which was to be plied by them. This financial assistance by way of transport loan was agreed to be made available with condition of repayment of the amount of loan with interest at 2.5% above the Reserve Bank of India rate of interest with minimum of 12.5% per annum with quarterly rests, payable in 42 regular monthly instalments and on defendants Nos.1 and 2 furnishing adequate security for repayment of the amount of loan. Defendants Nos. 1 and 2 accepted the conditions and provided defendants Nos. 3 and 4 as guarantors. Defendant No.2 also pledged his fixed deposit receipt dated 13th November, 1984, which he had taken from the State Bank of India Yol Camp Branch, District Kangra for Rs. 20,000/-. Necessary loan documents were executed by defendants