THE HONOURABLE Dr.JUSTICE G.RADHA RANI

JUDGMENT:

This appeal is filed by the appellant-defendant aggrieved by the judgment and decree dated 23.10.2002 passed in O.S No.163 of 2000 by the XI Additional Chief Judge, City Civil Court (FTC), Hyderabad.

2. The respondent is the plaintiff.

3. For the sake of convenience, the parties are hereinafter referred as arrayed before the trial court.

4. The plaintiff filed the suit for recovery of money of Rs.5,88,000/-

with interest at 24% per annum. The plaintiff was a finance company registered under the Companies Act, 1956, represented by its Managing Director Mr. G. Mahesh. The contention of the plaintiff was that the plaintiff and defendant were longtime friends and had longstanding association. The defendant had also deposited amounts with the plaintiff company. One day, the defendant brought his friend by name Mr. B.Kutumba Rao and introduced him and stated that the said Kutumba Rao was in need of money for his business requirement and requested the plaintiff to advance a loan of Rs.3,00,000/- and offered to stand as a guarantor. Mr. Kutumba Rao submitted loan application on 05.11.1995 and executed a promissory note on the same date for which