JUDGMENT:

The appeal suit is filed against the decree and judgment dated 14-03-2005 in O.S.No. 69 of 2005 passed by learned II Additional Senior Civil Judge, Nellore (for short, 'the trial Court'). The suit was filed by the plaintiffs for recovery of Rs.5,04,000/- from the defendants with subsequent interest @ 18% p.a. from the date of suit till the date of realization with costs.

2. The case of the plaintiffs as narrated in the plaint, in brief, is as follows:

The plaintiff is a registered firm, carrying on business in manufacturing polythene bags, situated in Autonagar at Nellore. The plaintiff made an application with the defendants for sanction of a loan of Rs.7,55,000/- for purchase of five items of machinery from different suppliers. On seeing the application, the defendants have sanctioned only Rs.4,90,000/- being 65% of Rs.7,55,000/- and communicated the same vide letter dated 18-12-1998. The plaintiff took the plaint schedule property on lease for ten years from Messrs S.F.K. Packaging Industry under a registered lease deed dated 15-06-1999 as required by the defendants and as per their norms and furnished the same to defendant No. 2. The plaintiff initially placed an order f