C. M. NAYAR ( 1 ) THIS suit is filed against the defendants for recovery of Rs. 5,79,298. 63 with pendent lite and future, interest at the rate of 13 and half percent per annum from the date of filing of the suit. ( 2 ) THE Plaintiff is one of the subsidiary to the State Bank of India, with its Head Office at Tilak Marg, Jaipur and having one of its Branch Offices at 4/90, Connaught Place, New Delhi. I. D. Prashar, the accountant and the acting Branch Manager and the principal officer of the plaintiff bank and being acquainted with the facts and also authorised in terms of Regulation No. 55 and 56 of the Subsidiary Banks General Regulations, 1959, is competent and authorised to institute the present suit and to sign and verify the pleadings. ( 3 ) M/s. Compugoraphic Inc. a sole proprietary concern of Shri Anil Kishore and the unit of defendant No. 1 was classified as Small Scale Industrial Unit and registered with the Director of Industries vide provisional Registration No. 55/55/ 10721 dated 14/5/1984. It is alleged that at the request of Shri Anil Kishore and also on the promise of his father Shri R. N. Mehra to stand guarantee for him, the plaintiff bank agreed to advance the Medium Term Loan for the purchase of capital equipments (i. e. Plant and Machinery and Furniture Fittings) and Cash Credit Facility for the Working Capital requirements of defendant No. 1. On May 2, 1985 the plaintiff bank at the request of defendant No. 1 and in consideration of the guarantee of defendant No. 2 and in terms of the agreement of medium term loan against the pledge of moveable machinery executed by defendant No. 1 and defendant No. 2 agreed to pay or advance a sum of Rs. 3,63,000. 00 by way of loan inter alia amongst others on the following conditions:- I) the amount of loan to be advanced and paid by way of making payment direct to the suppliers of plant and machinery; ii) the defendants repay the loan in equal monthly instalments of Rs. 7,260. 00 alongwith interest @ 13. 3,63,000. 00 by way of loan inter alia amongst others on the following conditions:- I) the amount of loan to be advanced and paid by way of making payment direct to the suppliers of plant and machinery; ii) the defendants repay the loan in equal monthly instalments of Rs. 7,260. 00 alongwith interest @ 13. 5% per annum; iii) first monthly instalment to commence on 1st day of September 1985 and the remaining monthly instalments on or before the same day of each month thereafter; iv) the machinery to be purchased shall remain pledged with the plaintiff bank as a security for the amounts due to the bank against the defendants under the medium term loan account; v) In case of any single default in the payment of instalment on the dates stipulated in the agreement, the entire amount of loan would become payable in lump sum. ( 4 ) IT is further alleged that on May 2, 1985 the plaintiff bank advanced loan of Rs. 3,63,000. 00 to defendant No. 1 by paying the same to the suppliers M/s. Linotype Associates India Private Limited towards the cost of the machines purchased by defendant No. 1 and the defendants executed the following documents: I) Agreement of Medium Term Loan against the pledge of moveable machinery executed by defendant no. 1. ii) Agreement of Guarantee executed by defendant No. 2. ( 5 ) THE defendants did not pay any instalments towards the payment of the medium term loan, as stipulated in the agreement dated 2nd May, 1985 and the plaintiff reminded the defendants time and again. Defendant No. 1 only deposited the paltry sum of Rs. 100. 00 in cash on 23rd May, 1987. It is stated in the plaint that a sum of Rs. 4,96,218. 20p. Inclusive of interest at the rate of 13. 5% per annum upto 15th March, 1988 is outstanding and due from the defendants to the plaintiff. ( 6 ) ON 2nd May, 1985 at the request of defendant No. 1 and in consideration of the guarantee of defendant No. 2 the plaintiff bank agreed to advance monies to defendant No. 1 under the cash credit Hypothecation account from time on the following terms and conditions: I) The plaintiff bank would be advancing money (ies) to the defendants in the cash credit account from time to time not exceeding Rs. 50,000. 50,000. 00 with interest at the agreed rate of 13. 5% per annum at any one time against security and the hypothecation of materials and book debts; ii) The defendants will at all times maintain a sufficient quantity and market value of the goods to provide the marginal security; iii) The defendants will repay the amounts due to the plaintiff bank under the cash credit hypothecation account, as and when demanded In respect of this loan on 2nd May, 1985 the defendants executed following documents: - i) Demand Promissory Note dated 2nd May, 1985 for Rs. 50,000. 00 by defendant No. 2 in favour of defendant No 1 and duly endorse in favour of the plaintiff bank. ii) Demand Promissory Note Delivery Letter dated 2nd May, 1985 duly signed by both the defendants. iii) Letter of waiver dated 2nd May 1985 duly signed by the defendants. iv) Agreement of cash credit dated 2nd May, 1985 executed by both the defendants. v) Agreement of guarantee dated 2nd May 1985 by defendant No. 2. ( 7 ) A sum of Rs. 83,080. 34 Paise inclusive of interest @ 13. 5% p. a. upto 15th March, 1988 are outstanding and due to the plaintiff bank from the defendants in the said cash credit account and the defendants have failed to pay the same despite number of demands by the plaintiff bank. The amount which were ultimately held due and payable by the defendants against the Medium Term Loan Account and Cash Credit Account as on March 15, 1988 are, Rs. 4,96,218. 29 and Rs. 83,080. 34 respectively totalling Rs. 5,79,298. 29 with costs and interest at the rate of 13 and half per cent per annum from the date of filing the suit and the suit was filed in respect of the same in this Court. ( 8 ) SUMMONS in the suit were issued and defendant No. 1 was proceeded against ex parte on September 8, 1988. Thereafter said defendant put in his appearance in Court on August 10, 1989 stating that he will file an application for setting aside the order of ex parts proceedings against him. ( 8 ) SUMMONS in the suit were issued and defendant No. 1 was proceeded against ex parte on September 8, 1988. Thereafter said defendant put in his appearance in Court on August 10, 1989 stating that he will file an application for setting aside the order of ex parts proceedings against him. In the meantime proprietor of defendant No. 1 died and an application being I. A. No. 4030/90 was moved before this Court for bringing on Record the L. Rs of deceased proprietor of defendant No. 1 and by an order dated May 21, 1990 the notices were directed to be issued to them. The L. Rs of deceased defendant No. 1 were proceeded against ex parte vide order dated September 1, 1994. Defendant No. 2 was also proceeded against ex parte on November 30,1989. ( 9 ) THE plaintiff was directed to file evidence by way of affidavit. The same has been filed and forms part of the record. The averments made in the plaint are reiterated. ( 10 ) THE plaintiff bank has filed the documents which are marked as Exhibits P. 1 to P. 50. Exhibit P. 50 is the photo copy of the Gazette Notification published on December 4, 1982 by which Shri I. D. Prashar was duly authorised to institute the present suit. Exhibit P. 2 is the letter dated May 1,1985 along with its. Annexures Exhibit P-I/a and P-2/b containing the terms and conditions for the grant of Medium Term Loan and Cash Credit Hypothecation. Exhibit P-8 is the agreement in respect of the Medium Term Loan executed by defendant No. 1. Exhibit P-9 is the letter signed by defendant No. 2 thereby confirming his acceptance for guarantee for defendant No. 1 with respect to various credit facilities to be enjoyed by defendant No. 1 from the plaintiff bank. On May 1985 defendant No. 2 executed an agreement of guarantee for the amounts due to the plaintiff in their medium term loan account and the same is Exhibit P-10. The true copy of the Statement of Account certified under the Bankers Books of Evidence Act and duly signed by Shri I. D. Prashar, the Accountant is Exhibit P-11 (Exhibit P. 49 ). The true copy of the Statement of Account certified under the Bankers Books of Evidence Act and duly signed by Shri I. D. Prashar, the Accountant is Exhibit P-11 (Exhibit P. 49 ). The plaintiff Bank through their counsel Shri S. C. Sharda, Advocate sent a notice dated December 2, 1986 calling upon the defendants to pay the amount due to the plaintiff in the Medium Term Loan Account and Cash Credit Account and the carbon copy of the notice is Exhibit P. 35. Exhibits P. 36 to P. 41 are the postal receipts and acknowledgment cards of defendants 1 and 2. The plaintiff Bank sent another notice dated January 13, 1987 intimating the correction in the earlier notice dated December 2, 1986. The same is Exhibit P. 42 and Exhibits P. 43 to P. 48 are the postal receipts and acknowledgement cards of defendants 1. The other relevant documents as referred to in the plaint are duly exhibited and filed. ( 11 ) I have heard learned counsel for the plaintiff and also perused the documents on record. The defendants neither appeared in Court nor put forward their defence to controvert the claim as made in the plaint. The plaintiff has proved the same which is supported by evidence that has been filed by affidavit and is corroborated by the documents on record. ( 12 ) ACCORDINGLY, I pass a decree in the sum of Rs. 5,79,298. 63 in favour of the plaintiff and against the defendants with costs. The plaintiff shall also be entitled to pendente lite and future interest at the rate of 12 per cent per annum from the date of institution of the suit till realisation.