This appeal is filed by the plaintiff-Bank challenging the dismissal of the suit filed by it for recovery of a sum of Rs.3,16,995.14/- [Rupees Three Lakhs Sixteen Thousand Nine Hundred and Ninety Five and fourteen Paise Only] together with further interest at 19.5% per annum from the date of plaint till the date of realization.

2. According to the plaintiff-Bank the first defendant represented by its Proprietor availed over draft facility in its current account to a tune of Rs.1,50,000/- [Rupees One Lakh Fifty Thousand Only] by hypothecation of stock-in-trade with the business. The facility was sanctioned on 12.11.1981, and it was availed on 27.01.1982. The documents required for the said facility were also executed by the first defendant represented by its proprietor. The money lying in the Adarsh Deposit Account with the plaintiff-Bank was also offered as security. According to the plaintiff-Bank, the first defendant acknowledged the liability, by executing an acknowledgement of debt on 25.01.1985 which has been produced as EX.A12. The suit was filed on 25.01.1988.

3. The defendants resisted the suit contending that the acknowledgement of debt dated 25.01.1985 was not sig