ALLAHABAD BANK Vs. ANIL KUMAR

JUDGEMENT

(1.) This is a suit on behalf of the plaintiff-Bank praying for passing a decree of Rs.5,30,156.00 along with pendente lite/future interest and also for passing a preliminarydecree of sale in respect of the mortgaged property under Order xxxiv of CPC. Thedefendants were duly served but did not enter appearance and by the Order of thisCourt dated 12.11.1998, the defendants have been proceeded ex-parte.

(2.) The plaintiff-Bank is body corporate, constituted under the Banking CompaniesAct 5, 1970. The plaint is duly signed and verified by Shri Krishna Kumar Kanshal,Manager and Principal Officer of the plaintiff-Bank. who is authorised to sign andverify the plaint on behalf of the plaintiff-Bank.

(3.) It is averred in the plaint that the defendant No.1 as principal borrower,approached the plaintiff-Bank for financial assistance in the form of Term LoanFacility in the sum of Rs.2,53,272.00 vide loan application dated 07.09.1988 (Ex. PW-1/1) for purchasing a truck. The plaintiff sanctioined a loan facility in the sum ofRs.2,40,000.00 vide Sanction Letter (Ex. PW-1/2) duly acknowledged by defendantNo.1 vide letter (Ex. PW01/3). The defendant No.1 in consideration of the said loanfacility executed the loan documents as a security infavour of the plaintiff-Bank in theshape of medium Term Loan Agreement (Ex. PW-1/4) ; Affidavit (Ex. PW-1/5);Irrecovable Letter of Authority (Ex. PW-1/6); Demand Promissory Note (Ex. PW-1/7);Money Consideration Receipt (Ex. PW-1/8); Letter of Waivement (Ex. PW-1/9);another Demand Promissory Note (Ex. PW-1/10); Money Consideration Receipt(Ex. PW-1/11); Letter of Waivement thereof (Ex. PW-1/12), another DemandPromissory Note (Ex. PW-1/13); Money Consideration Receipt thereof (Ex. PW-1/14) & Letter of Waivement thereof (Ex. PW-1/15). It is also averred in the plaint thatdefendants 2 & 3 stood as Guarantors and executed Agreement of Guarantee (Ex.PW-1/16-17). The defendants agreed to pay an interest @ 12.5% per annum withquarterly losts. The defendant No.1 agreed to repay the entire loan facility in 36monthly instalment of Rs. 6.670.00 ' each with interest thereon and the first instalmentwas to commenced w.e.f. November, 1998. In addition to the above defendant No.1also undertook to pay the increased rate of interest as per the directions of R.B.I andalso agreed to produce the truck once in a month for inspection before the plaintiff-Bank.