STATE BANK OF INDIA Vs. J C INDUSTRIES

JUDGEMENT

(1.) THIS appeal is directed against the judgment and decree dated 23-09-1996 passed by District Judge, Raigarh, in Civil Suit No. 44-A/1194 by which Appellant's suit for recovery of balance amount, has been partly allowed and decreed.

(2.) BRIEF facts for disposal of this appeal are that on 08-11-1992 a commercial loan of Rs. 2,00,000/- (Rupees two lakhs) was sanctioned by Appellant/Bank to Respondents No. 1 and 2 in the shape of working capital through cash credit facility. Respondent No. 2 executed various loan documents and Respondent No. 3 furnished his guarantee to secure the said loan and guaranteed due repayment of the said loan. Respondent No. 3 towards security of the loan mortgaged his immovable properties by delivering the title deed of those properties. To avail the aforesaid loan facility, Respondent No. 1 and 2 opened account on 11-01-1993 and from time to time they withdrew amounts from the account and deposited amount towards repayment of the loan. When Respondents No. 1 and 2 made default in repayment of the loan, they along with Respondent No. 3 were served with legal notice, but the balance of Rs. 2,01,431/- was not paid by the Respondents. Hence, the Bank/Appellant filed the suit for recovery of the said amount with interest accrued thereon.

(3.) LEARNED lower Court after appreciating the evidence held that Respondents failed to prove that without filling the column of interest and explaining the contents of all the documents their signatures have been obtained. LEARNED Court below also held that the Appellant did not tell the Respondent No. 2 that interest @ 10% shall be charged. LEARNED lower Court held that after 20-04-1993 Appellant did not permit the Respondent No. 2 to withdraw any amount, and considering amount withdrawn and repaid by that time passed a decree for Rs. 1,57,000/- which was outstanding at that time without further interest thereon.