B M DEVAIAH Vs. CANARA BANK YELWAL BRANCH

JUDGEMENT

(1.) THIS is a defendants appeal arising out of a suit for recovery of money decreed by the Prl. Civil Judge, mysore, in favour of the respondent-Bank. The facts leading to the institution of the suit and the filing of the present appeal may be summarized as under :

(2.) M/s. Simone Enterprises was at the relevant point of time, a Partnership concern comprising Mrs. Kitty Mandanna and sri. C. P. Muthanna. The partnership was carrying on hotel and restaurant business in the name and style of Dew Drop Inn the firm it appears approached the plaintiff-respondent-Bank for a loan of Rs. 2,5,000/- which the Bank granted upon the borrower executing a Promissory Note and creating a mortgage by deposit of title deeds in respect of property mentioned in schedule B to the plaint. A deed of hypothecation in regard to the property described in Schedule-C to the plaint was also executed by the Borrower by way of an additional security.

(3.) A few months after the loan transaction was completed, the partners of the firm informed the plaintiff-Bank that the firm had been reconstituted and Sri B. M. Devaiah inducted as partner. The plaintiffs case before the trial Court was that the defendantfirm having failed to liquidate the outstanding liability on account of the principal and interest accruing on the same, it had no option but to file a suit seeking recovery of the money recoverable from the defendant firm and its three partners. A decree for a sum of Rs. 2,08,529. 55 with interest pendente lite and future was accordingly prayed for.