(1.) The present respondent No.2 had instituted the Original Suit against the present respondent No.1 and present appellant arraying them as Defendant Nos.1 and
(2.) respectively in the court of the learned XXIX Additional City Civil and Sessions Judge (CCH -30), Bangalore City (hereinafter for brevity referred to as "Trial Court") in O.S.No.751/2002, seeking for recovery of a sum of Rs.52,527/- with costs, current and future interest. 2. The summary of the case of the plaintiff - State Bank of India (SBI) in the Trial Court was that, the first defendant (respondent No.1 herein ) had availed a loan of a sum of Rs.50,000/- from it for the purchase of consumer durables on the guarantee of the second defendant (appellant herein) on 09-02-1999, agreeing to repay the said loan amount in thirty-six equal monthly instalments at the rate of Rs.1,800/- per month compounded quarterly. In that regard, the first defendant who is the principal borrower had executed an On-Demand Promissory Note and take Delivery Note cum Delivery letter dated 09-02-1999. The first defendant also executed an Hypothecation Agreement of even date. The second defendant (appellant herein) had also executed a Guarantee agreement on 09-02-1999. After availing the loan, the defendants failed to repay the loan amount along with interest and committed default. Despite issuance of demands and legal notice, the defendants since committed default in repayment of the loan amount, the plaintiff - Bank was constrained to institute the present suit.
(3.) Even though summons were served, the first defendant did not choose to appear and contest the matter, as such, she was placed ex-parte. The second defendant (present appellant) appeared through his counsel and contested the matter. In his Written Statement, the second defendant denied the entire loan transaction including he executing the document (Guarantee Agreement), extending his guarantee-ship for the Principal Borrower and in favour of the plaintiff - Bank. He denied that the first defendant had availed a loan of a sum of Rs.50,000/- on the guarantee of the second defendant.