KARNATAKA GRAMIN BANK SANIKERE BRANCH Vs. H GANGANNA

JUDGEMENT

(1.) The present appellant was the plaintiff in the Court of the Civil Judge (Sr.Dn.), Challakere, (hereinafter for brevity referred to as 'trial Court'), in O.S.No.2/2003 filed against the present respondents herein arraigning them as defendants. The suit was filed for recovery of money for a sum of Rs.1,58,142.00 and other incidental expenses and cost and interest at the rate of 14.5% p.a. plus 2% penal interest compounded half yearly from the date of suit till realisation by the sale of suit schedule mortgaged property and also personally from the defendants.

(2.) The summary of the case of the plaintiff in the trial Court is that, it is a Banking Company having its one of the Branch Office at the address shown in the cause title to the plaint. At the request of the defendants, it had advanced a loan of Rs.3,24,000.00 to the defendants for the purpose of purchase of a Tractor and Trailor. The defendants had executed a Promissory Note, a letter of Agreement and a simple Mortgage Deed in favour of the plaintiff-Bank in return of they availing a loan of Rs.3,24,000.00 from the plaintiff on 27.12.1999. Though the defendants had agreed to repay the said loan amount in installments along with interest at the rate of 16.5% p.a. with half yearly interest, they failed to repay the loan amount. This made the plaintiff to institute a suit against the defendants for recovery of a sum of Rs.1,58,142.00 and other incidental expenses and cost and also with interest at the rate of 14.5% p.a. + 2% penal interest compounded half yearly from the date of suit till realisation by the sale of suit schedule mortgaged property and also personally from the defendants.

(3.) The defendants who were served with the summons appeared through their counsel, but, they did not file their written statement. During the pendency of the suit, it was reported to the trial Court on 19.12.2005 that 2nd and 3rd defendants were died and the other defendants who were on record are the legal representatives of the deceased defendant Nos.2 and 3. The trial Court recording the said submission made through a memo, permitted the amendment in the cause title of the plaint. Accordingly, the cause title of the plaint was amended confining the number of defendants in the trial Court to seven instead of nine. Thereafter, the suit against defendant No.5 came to be dismissed for not taking the steps. The trial Court proceeded in the matter and by its impugned judgment dated 30.6.2006, observing that since the suit against defendant No.5 is dismissed, the cause against other defendants would not survive, dismissed the suit of the plaintiff. It is against the said judgment and decree, the appellant has preferred this appeal.