SYNDICATE BANK Vs. VINOD SHARMA

JUDGEMENT

(1.) This suit for the recovery of Rs. 8,18,024.70 was filed in Oct., 1997 and summons were issued to the defendants from time-to-time. On 4.5.1998, defendant No. 1 was granted time to file a written statement but has failed to do so. On the following dates i.e. 18.8.1992. Defendant No. 2 failed to appear despite service. There was no appearance on behalf of defendant No. 1 either on that date. On 5.2.1999, the defendants were eventually proceeded ex parte. The plaintiff was permitted to lead evidence by way of affidavit. On the basis of three affidavits filed on behalf of the plaintiff Bank, their documents are exhibited as Ex. P-2 and Ex. P-30. The original power of attorney was subsequently produced on an inspection thereof, a photo-copy was exhibited as Ex. P-1. I have heard the arguments of learned Counsel for the plaintiff.

(2.) The plaint discloses that on the request of learned Counsel for defendant No. 1, the plaintiff sanctioned credit facilities on 28.12.1989 to it in the nature of (a) O.D.H. limit to the tune of Rs. 1.25 lacs and (b) Bill Discounting Facility to the tune of Rs. 3.50 lacs. The suit has been filed in respect of the bills discounted by the plaintiff which bills were dishonoured. In consideration of the grant of the aforesaid facilities, defendant No. 1 executed an Indemnity-cum-Guarantee dated 3.1.1990 in favour of the plaintiff. The plaint thereafter contains details of the various bills discounted by the plaintiff. It is further averred the interest @ 24.5 per cent per annum compounded quarterly is payable. A Legal Notice dated 6.2.1993 served on the defendants in response to which they acknowledged the liability and promise to clear the dues shortly. The liability was acknowledged by the defendants 'Acknowledgement of Debt' dated 17.6.1982, 30.6.1992, 26.11.1994 and 26.2.1997. In accordance with the Statement of Accounts duly certified under the Bankers Book Evidence Act, a sum of Rs. 8,18,024.70 was due and payable by the defendants to the plaintiffs. The plaint further contains an averment that defendants 1 and 2 on 3.1.1990 executed personal guarantee agreements towards their liabilities to the plaintiff. The claims are stated to be within the period of limitation on account of the Acknowledgement of Debt mentioned hereinabove.

(3.) In support of the claims in the plaint, the plaintiff has filed an affidavit of Shri M.V. Kudva, Chief Manager, Syndicate Bank, Nirman Vihar, Delhi. The Power of Attorney in his favour has been proved and is Ex. P-1. The witness has deposed that the defendants are liable to pay a sum of Rs. 8,18,024.70 with interest at the rate of 24 percent per annum as per RBI directions. He has also deposed that a Legal Notice dated 6.2.1993 was dispatched in addition to numerous other letters and that despite acknowledging their liabilities, the defendants took no steps to liquidate the outstanding dues. He has further deposed that as shown in the regular Books of Accounts maintained by the Bank in the normal and usual course of the Banking business, an amount of Rs. 8,18,024.70 was due and outstanding in respect of bill discounting and returned unpaid. He has further stated that defendants 1 and 2 had executed personal guarantees and that they had acknowledged liability by their writings on 17.6.1992, 30.6.1992,26.11.1994 and 26.2.1997 and that by virtue of these acknowledgements, the suit was within limitation.