This appeal has been directed against the decree and Judgment in O.S.No.66 of 1994 on the file of the Court of Subordinate Judge, Sankagiri. The plaintiff UCO Bank has lost his case before the trial Court is the appellant herein.

2. The averments in the plaint relevant for the purpose of deciding this appeal in brief

are as follows:

The first defendant had approached for a loan with the plaintiff for the purpose of a Tractor and a Trailor for a sum of Rs.1,18,500/-and the same was sanctioned by the plaintiff with the following conditions.

a) That the loan is to be guaranteed by equitable mortgage by deposit of title deeds with

the plaintiff.

b) That the tractor to be purchased should be hypothecated with the plaintiff.

c) That the loan amount be paid within seven years

d) that the first defendant shall pay interest at 12.5%

e) interest is calculable at half yearly rests and as per the varying rates of interest then and there according to the directions of the Reserve Bank of India.

The defendants agreeing for the above said conditions, availed loan to the tune of Rs.1,18,500/- on 16. 1983 by executing the documents viz.,

(1) Demand promissory note in favour of the plaintif