RADHEY SHYAM GUPTA Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Leave granted.

(2.) On 28th May, 1986, the Respondent No.1 Bank sanctioned a loan of Rs.83,000/- to Shri Durga Prasad, the Respondent No.2 herein. The appellant stood guarantee for the Principal Debtor for repayment of the loan.

(3.) As the loan was not repaid by the Principal Debtor, Durga Prasad, the Bank in 1992 filed Suit No.66 of 1992 for recovery of its dues against the respondent No.2 in his capacity as the loanee and against the appellant in his capacity as guarantor. The suit was decreed on 19th December, 1994, by the learned Additional District and Sessions Judge, Bayana, District- Bharatpur, in favour of the respondent No.1 'Bank for a sum of Rs.1,10,360/-, together with interest at the rate of 12.5% per annum from the date of institution of the suit till realization. While decreeing the suit, the trial Court directed as follows :-