Dhiraj Singh Thakur, J.

1. The present Letters Patent Appeal has been preferred against the judgment and order dated 26.2.2004 passed in Civil 1st Appeal No. 3 of 2000 by a Single Bench of this Court. Briefly stated the material facts are as under:

2. The respondent No. 1 obtained a loan for an amount of Rs. 2,20,000/- from the appellant-Bank in the year 1981. A Hundi dated 12.8.1981 for the loan amount was executed by respondent No. 1 whereas, defendants No. 2 and 3 executed a deed of guarantee dated 12.8.1981 for the said amount.

3. Failure on the part of the defendant No. 1 to discharge his obligation led the bank to raise a notice of demand dated 4.2.1987 against the defendants requiring them to discharge the loan amount with interest which had accrued thereupon.

4. The defendant No. 1 is then stated to have approached the appellant-Bank and executed a demand promissory note purporting to acknowledge the liability of the past debt for a sum of Rs. 2,99,865.52/-.

5. Failure on the part of the respondent No. 1 to repay the amount of loan along with the interest forced the plaintiff-bank to file a suit for recovery of Rs. 3,54,558.18/- both on account of principal and interes