CENTRAL BANK OF INDIA Vs. LALIT AGARWAL

JUDGEMENT

(1.) Instant First Appeal filed by the plaintiff under Section 96 of C.P.C. is directed against the judgment and decree dated 30.09.1997, passed by the District Judge, Rajnandgaon, in Civil Suit No. 1-B/1991. Plaintiff-Bank sanctioned and granted loan/credit facilities to defendant No. 1 to the limit of Rs. 75,000/-. The defendant No. 1 submitted all the necessary documents with the Bank on 23.05.1987. Because of certain reasons, the Murmura industry started by the defendant No. 1 suffered setback and closed in the year 1988. On 03.01.1989 an amount of Rs. 1,46,108.35/- was due in cash credit account of defendant (Ex. P/11), however, the Bank neither settled the matter with the defendant nor instituted any suit immediately and the suit has been filed only on 02.05.1991 i.e. about 2-3 years after closure of industry.

(2.) As per plaintiff's case, on the date of suit, Rs. 2,06,271.35/- was due in cash credit account of defendant.

(3.) The trial court, considering financial status of the defendant, the fact that defendant's industry was closed ever-since 1988-89 as well as that the cash credit limit of only Rs. 75,000/- has been taken by the defendant, although granted a decree of Rs. 2,06,271.35/- but awarded interest @ 6 percent per annum from the date of suit till its realization against the defendant No. 1, also granted installment facilities for payment of decretal amount.