SYNDICATE BANK Vs. CHANNAVEERAPPA BELERI

JUDGEMENT

(1.) THIS appeal by special leave, is by the plaintiff Bank against the judgment dated 6.3.1997 of the High Court of Karnataka dismissing R.F.A. No. 107 of 1993 filed by it against the judgment and decree dated 29.10.1992 of the Civil Judge, Gadag in O.S. No. 29 of 1990, dismissing its suit on the ground of limitation.

(2.) THE appellant bank filed Original Suit No. 29 of 1990 against respondents 1 to 7 herein for recovery of Rs. 19,77,478/60 (the liability of respondents 2 and 3 being restricted to Rs. 15,75,960 and liability of respondents 6 and 7 being restricted to 17,56,070.60) together with interest @18.5% per annum compounded quarterly from the date of suit till the date of realization. THE plaint averments in brief are as under. 2.1) THE bank had extended credit facilities by way of overdraft, goods loan, and demand loan against supply Bills to a company known as Gadag Forge Fits (India) Pvt. Ltd., ('company' for short). Respondent 1 was its Managing Director and respondents 2 to 7 were its Directors. THE credit facilities were renewed and enhanced from time to time. Respondents 1 to 7 executed the following guarantee bonds in favour of the bank, personally agreeing and undertaking to pay and satisfy the bank on demand all sums which may be due on account of the credit facilities granted to the company subject to the limits mentioned therein :

(3.) TO appreciate the rival contentions, it is necessary to refer to the relevant statutory provisions, the terms of the guarantee and the decision of this Court relied on by both parties 5 1) Section 126, 128, 129 and 130 of Contract Act, 1872 are extracted below