STATE BANK OF MYSORE Vs. PRECISION INDIA

JUDGEMENT

(1.) The present suit has been filed by the State Bank of Mysore, hereinafter described as the plaintiff against the defendants M/s Precision India & Ors. for recovery of Rs.7,69,831.45.

(2.) The facts alleged are that defendant no. 2 is the proprietor of defendant no.1. Defendant nos. 3 and 4 are the guarantors in respect of the dues of the plaintiff. Defendant no.1 through its proprietor was availing the cash credit (hypothecation) limit from the plaintiff bank. It was enhanced to Rs.3.00 lakhs on 21/11/1988. To avail of the said limit defendant no.2 had executed the documents (a) a demand promissory note for Rs.3.00 lakhs (b) DPN delivery letter and (c) agreement of hypothecation executed by defendant nos. 1 and 2 hypothecating goods stated in schedule in favour of the bank valued approximately at Rs.4,20,000.00. Defendants 1 and 2 had also given a letter of revival of the said cash limit on 21/5/1990 in the prescribed form. It was confirmed. In this process Rs.5,49,943.00 were due to the plaintiff besides interest of Rs.6104.00 from 1/10/1994 till the date of the filing of the suit. Another cash credit limit for Rs.70,000.00 was granted to defendants 1 and 2, with defendants 3 and 4 as guarantors. Similar documents were executed and facility was availed. Hence the present suit has been filed. Notice had been issued but the defendants had been proceeded ex parte. The evidence has been led by may of filing of the affidavit.

(3.) The affidavit has been filed of Shri J.K. Dubey, Chief Manager, State Bank of Mysore. He has stated that he has seen Shri N.K. Sen Gupta write and sign and he was the Chief Manager of the plaintiff. He identified his signatures on the plaint. This indicates that suit has been filed by the Chief Manager who had been so authorised.