BHARTIYA STATE BANK Vs. BHANJAN SINGH

JUDGEMENT

(1.) THIS is an appeal filed by the Bank against the judgment and decree dated 14.05.1999 passed in Civil Suit No.34 -A/1999 by the Court of Additional District Judge, Bilaspur, whereby the suit filed by the Bank was dismissed as barred by limitation.

(2.) ACCORDING to the plaint allegations, the deceased Ramu Singh Thakur had applied to the Bank to obtain the loan under the agricultural heads. It was also pleaded that different documents were executed and further the repayment of loan was further secured by the guarantor and a deed of guarantee was also executed by one Badri Prasad Agrawal. After examining the documents and application, the Bank sanctioned the loan to the borrower under different heads and loan Rs.40,000/ - was for tube - well, Rs.12,000/ - for fencing of the field and Rs.14,000/ - for the crops. Thereby, in all, total loan of Rs.66,000/ - was sanctioned.

(3.) IN reply to the pleadings made, the legal heirs of Ramu Singh Thakur namely Anju Singh Thakur and Megha Singh Thakur stated that only Rs.14,000/ - loan was availed under the cash credit for crops and rest of the averments were denied. It was also stated in the reply that the Branch Manager did not have the power to file the suit and prayer was made for dismissal of the same. Whereas, the guarantor had also refuted the claim and it was stated that since the mortgage was created, therefore, the Bank should have first followed the property created under the mortgage and sale it thereafter the recovery from guarantor could have been made.