A.S. Venkatachalamoorthy, J.

1. The defendant is the appellant. The respondent herein, as plaintiff, filed a suit in C.S.No.561 of 1984 on the file of the High Court against the appellant/defendant, praying the court to grant a decree against the appellant/defendant for a sum of Rs. 12,43,240.93 together with interest at 19.5% thereon from the date of the suit till realisation.

2. The case of the respondent/plaintiff is that it had a cash credit facility to the extent of Rs.17 lakhs with the appellant/defendant Bank since 26.3.1983 and for which, as directed by the defendant, the plaintiff gave a Fixed Deposit of Rs.25 lakhs to the defendant. Apart from that, it had also hypothecated its stocks in trade worth more than Rs.l crore with the defendant by way of security for repayment of loan. It is the case of the respondent/plaintiff that the defendant without any reason whatsoever, dishonoured three cheques issued by it viz., [a] Cheque No.0577368 dated 2.9.83 for a sum of Rs.29,645; [b] Cheque No.0577369 dated 2.9.83 for Rs.55,317.50 and [c] Cheque No.0577362 dated 29.8.83 for a sum of Rs.2,102.50. When the plaintiff enquired as to the reason for dishonouring of those c