J U D G M E N T

This appeal under Section 96 CPC has been filed by the plaintiff against the judgment and decree dated 31/07/2003 in O.S.No.1/2002 on the file of the Subordinate Judges' court, Ernakulam. The respondents herein are the defendants in the suit. The parties in this appeal will be referred to as described in the plaint.

2. The plaintiff is engaged in the business of providing finance for the purchase of machinery, motor vehicles and consumer durables under hire purchase or leasing arrangements. The first defendant on 15/03/1996 entered into a hire purchase agreement with the plaintiff for the purchase of an ambassador car. The second and third defendants are the guarantors in the agreement. As per the terms and conditions of the hire purchase agreement, the first defendant agreed to repay the amount of ₹3,39,875/- which included the insurance premia and hire purchase charges at the rate of 17.5% per annum, which amount was agreed to be paid in 36 monthly installments starting from 15/04/1996. The first twenty-four monthly installments of ₹9,650/- each was agreed to be paid on or before the 15 th day of