(1.) .By this appeal under Sec. 96 of the Code of Civil Procedure, the appellant-original plaintiff. State Bank of India, has questioned the absolving of respondent Nos. 6 and 7 guarantors of cash credit transaction between the appellant and respondent Nos. 1 to 5 from payment of decreetal dues holding that there was no continuing guarantee. The parties are hereinafter referred to, as arrayed in the suit for the sake of convenience and brevity.
(2.) The plaintiff had to initiate a legal battle by filing Special Civil Suit No. 35 of 1983 in the Court of Civil Judge (S.D.) Kachchh, at Bhuj, against respondent Nos. 1 to 7 who are original defendants Nos. 1 to 7 in the suit for the recovery of the bank dues of Rs. 8, 82, 093.47 ps. together with interest at the rate of 15% per annum with effect from 1-4-1983 till date of payment from all the defendants jointly and severally pursuant to a cash credit loan transaction entered into on 19-10-1978 between the plaintiff bank and the original defendant Nos. 1 to 5. Original defendant No. 1 is partnership firm, whereas, original defendant Nos. 2, 3, 4 and 5 are partners of original defendant No. 1. Original defendant Nos. 6 and 7 are the guarantors.
(3.) Original defendant No. 1, on 19-10-1978, had drawn Rs. 1 lakh in the Cash Credit Account. The defendants were, from time to time, utilising this facility and sometimes they were also depositing certain amounts in the Cash Credit Account. The plaintiff bank as per the terms of the aforesaid general agreement revised the interest with effect from 1-7-1980, and the defendants were informed accordingly.