STATE BANK OF INDIA Vs. AKBAR

JUDGEMENT

(1.) NOTICE to respondent No. 1 and respondent No. 2 issued. Cover returned as not claimed. Under these circumstances, services held sufficient. The appeal itself is taken up for hearing.

(2.) THE State Bank of India, the plaintiff is the appellant, is aggrieved by the dismissal of the suit for recovery of money based on mortgage.

(3.) O. S. No. 131 of 1985 on the file of the Civil Judge, at Kolar, for a suit filed for recovery of money, namely, Rs. 70,787. 45 together with interest at 13. 5 per cent. This money was granted on a cash credit facility and the suit schedule properties were given as security and equitable mortgage has been created for due repayment of the money advanced. Cash credit facility was available for Rs. 30,000 and medium term loan of Rs. 50,000 was also granted by the bank. The balance was confirmed by the defendants as per the documents dated September 25, 1984, June 23, 1984, and April 10, 1985, and the revival letter dated August 26, 1982. The second defendant was a guarantor and he created the equitable mortgage offering his property as security. When the money stood due and outstanding and no payment forthcoming to the defendants, the suit came to be filed.