M V SHANTANAKASIMHAIAH Vs. DENA BANK MYSORE

JUDGEMENT

(1.) THIS appeal is by the 4th defendant. The plaintiff-bank instituted a suit for the recovery of 4,40,847. 50 together with court cost and current interest at 12. 5% p. a. , from the date of suit till the date of realisation.

(2.) ACCORDING to the plaint avernents, the 1st defendant-m/s. Karnataka paper converters is a partnership firm and that the defendants 2 and 3 are its partners. Defendant 3 is the wife of the 4th defendant.

(3.) THE 1st defendant represented by the defendants 2 and 3 have applied for loan facilities under various categories with the plaintiff bank. Accordingly, a sum of Rs. 60,000/- was sanctioned by way of cash credit pledge loan on 22-12-1978 and the said loan was sanctioned in favour of defendant 1 and the defendants 1 to 3 have agreed to repay the said amount together with interest at the rate of 3% over and above rbi with a minimum of 12% with. Quarterly rest. On the same date, the plaintiff has also sanctioned the cash credit hypothecation goods loan of Rs. 50,000/- and accordingly the defendants 1 to 3 have signed the on-demand promissory note and the defendant 4 who is the husband of the defendant 3 has stood as a guarantor for these two loans and that the defendant 4 has also executed the agreement of guarantee.