Aradhe, J. -- 1. In this bunch of appeals, since common question of law and facts arise for consideration, they are heard analogously and are being decided by the common judgment and decree. First Appeal No.144/2007 as well as First Appeal No.444/2006 have been filed by defendant No.1 being aggrieved by the judgment and decree passed in Civil Suit No.3-B/2002 and judgment and decree passed in Civil Suit No.4-B/2002 respectively, by which the claim of the plaintiff-Bank has been decreed. First Appeal No.166/2006 and First Appeal No.167/2006 have been filed by the plaintiff-Bank against the judgment and decree passed in the aforesaid civil suits, by which the defendant No.2 has been exonerated from 1+1/5 liability. In order to appreciate the challenge of the parties to the impugned judgments and decrees, relevant facts need mention which are stated infra.

2. The respondent No.1, namely Shivpuri Guna Kshetriya Gramin Bank, is a Bank incorporated under the Kshetriya Bank Adhiniyam, 1976 and has its branch at Mungaoli, District Guna. The plaintiff-Bank filed a suit, namely, Civil Suit No.3-B/2002 for recovery of an amount to the tune of Rs.4,85,159/- against the defendants inter alia on the ground that defendant No.1(a) and defendant No.1(b) submitted an application on 26.11.1998 for sanction of the loan to the tune of Rs.1,07,000/- and pledged the receipt No.42505 in respect of food grains stored in the warehouse of defendant No.2. The defendant No.1 also agreed that in case of non-payment of the loan, the Bank shall have the authority to sell the foodgrains stored in the warehouse and to recover the amount of loan. The in-charge of the godown of defendant No.2, namely Mr. Ram Govind Sharma also endorsed the lien notes on the receipt. It was also averred that respondent No.1 again applied for a loan of Rs.99,000/- on 26.11.1998 and executed necessary documents and pledged the receipt bearing No.43531 in respect of food grains stored in the warehouse of defendant No.2 and empowered the Bank that in case of default by the defendant No.1, in respect of repayment of the amount of loan, the Bank can sell the foodgrains stored in the warehouse and can recover the same. It was further pleaded that defendant No.1 again on 30.3.1999 applied for a loan of Rs.1,35,000/- and executed necessary documents and pledged the receipt No.42588 in respect of the foodgrains which were stored in the warehouse of defendant No.2. The godown incharge endorsed the lien note on the receipt and the Bank was given the authority to sell the foodgrains in case of default in repayment of loan by defendant No.1. It is the case of the plaintiff that the aforesaid amounts by way of was extended to defendant No.1 by way of cash credit facility subject to payment of interest at the rate of 20% per annum with quarterly rests.

3. The defendant No.1 did not repay the aforesaid amount within the prescribed time and, therefore, a notice dated 24.2.2000 was sent to the defendant to repay the amount of loan. On receipt of the notice, the defendant No.1 made part payment of the amount of loan but could not repay the entire amount. Accordingly, the Civil Suit No.3-B/2002 seeking recovery of amount to the tune of Rs.4,85,159/- along with interest was filed. Similarly, the plaintiff-Bank on the same set of averments filed another suit, namely Civil Suit No.4-B/2002 for recovery of the amount of Rs.6,82,668/- along with interest.

4. The defendant No.1 filed written statement in Civil Suit No.3-B/2002 in which inter alia it was admitted that the sum of Rs.3,44,383/- was given to him by way of cash credit facility by the Bank. However, it was denied that he had executed any agreement in respect of rate of interest. It was also pleaded that the defendant No.1 had pledged the receipt of foodgrains stored in the warehouse of defendant No.2. It was also pleaded that the defend