( 1 ) BOTH the appeals bearing nos. 237 of 1995 and 271 of 1995 filed on behalf of the appellants namely bishwanath Agarwala and State Bank of india respectively, have arisen out of the same judgment dated 29th July, 1995 and decree dated 4th August, 1995 passed in m. S. No. 43 of 1989.

( 2 ) THE case of the plaintiff in brief is that defendant No. 1 Jaydeb Panja was running business of wholesale medicine and he approached the plaintiff-Bank lor cash credit facility for running his business up to the sum of Rs. 2,50. 000/- and the plaintiff-Bank sanctioned the loan on 7-3-1986 on usual documentation, and on acceptance of terms and conditions by the defendant No 1. The aforesaid loan was sanctioned on acceptance of terms and conditions by defendant No. 1 to the effect that loan amount with agreed interest at the rate of 17. 5% per annum with quarterly rest would be paid on demand and on creating security by the defendant No, 1 and. defendant No. 2 stood as guarantor for defendant No. 1 and agreed to pay the dues in case of default by the defendant No. 1 and thus the defendant No. 2 jointly and severally became liable with the defendant no. 1 for the due payment of the loa