CANARA BANK Vs. SURYA CHEMICALS

JUDGEMENT

(1.) Plaintiff-Canara Bank has filed this Suit for recovery of Rs.604026.39p against the defendants. Its a mortgaged Suit under Order XXXIV of the Code of Civil Procedure and is based on the basis of the following averments :-

(2.) Plaintiff is a body corporate constituted under the Banking Companies (Acquisition and Transfer and Undertakings) Act, 1970 having its Head office at 112, J.C.Road, Bangalore. It has its branches throughout India including the one at Tagore Garden, New Delhi. Shri T.S.Prabhu is the duly constituted attorney of the plaintiff-Bank is also one of the Principal Officer of the plaintiff-Bank. He is conversant with the facts of the case and as such is in position to depose about the correctness or otherwise of the facts mentioned in the plaint. He has an authority to sign and verify the plaint and instituted the suit on behalf of the plaintiff-Bank. Defendant no.1 is a proprietorship firm. Shri Inder Kapoor is its proprietor. Defendant no.2 is a guarantor for the entire advance granted by the Bank alongwith interest and other expenses and is jointly and severally liable. The defendant no.3 is also guarantor and has mortgaged her property bearing No.RZ-13, Indira Park, out of Khasra No.643, Village Nasirpur, Delhi. Defendant no.1 through its proprietor approached the plaintiff-Bank around January, 1987 for grant of certain credit facilities on various form. The proposal submitted by the defendant no.1 were examined by the plaintiff-Bank and after certain modifications and imposition of various terms and conditions, these were acceded to.

(3.) In January, 1987 the defendant no.1 through its proprietor applied for loan for purchase of machinery for the manufacturing of paper mint flakes and crystals. The defendant no.1 offered to deposit 25% margin on machinery. The defendants 2 and 3 undertook to guarantee repayment of the entire amount together with interest and all other charges which may be found due from the defendant no. 1.