V.R. Kingaonkar, J. —

This appeal is directed against judgment and decree rendered by the learned Civil Judge (S.D.), Jalgaon, in a money suit (Spl.C.S.No.3/1987).

2. The appellants are original defendant Nos.1 to 4. The Respondent No.1 is plaintiff-bank and Respondent No.2 is the guarantor for loans which were allegedly availed by the appellants.

3. There is no dispute about the fact that the appellant No.1 is a registered partnership firm and the appellant Nos.2 to 4 are partners thereof. The Respondent No.1 is a Bank duly constituted under the Banking Companies Act.

4. Briefly stated, case of the plaintiff bank was that the defendant Nos.1 to 4/ appellants sought loans. The loan proposals were considered and as per sanction of the competent Officer, the following loans were sanctioned to them.

(a) Cash Credit Pledge of Rs.2, 00, 000/- (Rupees two lacs).

(b) B.P. limit of Rs. 1,00,000/- (Rupees one lac).

(c) Cash Credit Hypothecation loan of Rs. 4, 00, 000/- (Rupees four lacs).

(d) Term loan for construction of building Rs. 1,00,000/-.

(e) Term loan for purchase of machinery of Rs. 1,50,000/- (Rupees one lac fifty thousand).

A total amount of Rs.9,50,000/- (Rupees Nine lacs f