PUNJAB NATIONAL BANK Vs. PAPER CONDUCTOR

JUDGEMENT

(1.) Plaintiff-Bank has filed the Suit for recovery of Rs.6,79,345.15p against the defendants. The facts stated in the plaint are that the plaintiff is a body corporate constituted under the Banking Companies Acquisition and Transfer of Undertaking Act, 1970 having Its head office at 7, Bhikaji Cama place. New Delhi-110066. The plaintiff has its branch office at Shahdra, Delhi-110032. Mr.K.K. Malhotra is the Manager and is also the duly constituted attorney of the plaintiff bank. He is duly authorised to institute the Suit and verify the pleadings. He has knowledge of the facts of the case which knowledge is derived from the records maintained by the plaintiff bank. The defendant no.1 is a proprietorship concern having its office at 3063, Desh Bandhu Gupta Road. Paharganj, Delhi - 110 005. The defendant no,2 is the proprietor of defendant no.1 and in that capacity is liable for the dues of defendant no.1. The defendant no.1 through defendant no. 2 opened a current account No.570 9/11/1992 with the plaintiff bank at its Shahdara Branch. The defendant no.1 through its proprietor defendant no,2 sold goods to defendant no.3 vide bill dated 29/01/1993 for Rs.3,99,614.80 and the documents were presented through the plaintiff-bank. The defendant no.1 had to collect Rs. 3.99,614.80 from defendant no.3 if paid upto 2lst February, 1993 and if the payment was made thereafter then Rs.3.99,614.80 alongwith interest @ 24% per annum. Defendant no.1 drew an Hundi No.28 dated 2 9/01/1993 upon defendant no.3 which was to become due on 21/02/1993. The Hundi if not paid on due date was to carry interest @ 24% per annum. The Hundi was to be presented for payment through Bank of India, Khan Market branch. The Hundi was accepted by defendant no.3 on 29/01/1993. The defendant no.1 through the defendant no.2 requested the plaintiff to discount the said Hundi dated 2 9/01/1993 which request was accepted and defendant nos. 1 and 2 were allowed discount of bill on the pay in slips for bill dated 2 9/01/1993. The plaintiff discounted the said bill and credited sum of Rs.2,84,106.00 in the current account no.5709 of defendant no.1 on account of discounting of Hundi No.28 dated 29/01/1993 and bill dated 2 9/01/1993 by keeping margin money, interest, commission and other bank charges. Defendants 1 and 2 withdrew an amount of Rs.2,84,000.00 on 29/01/1993 Itself, Condition no.4 on the pay in slip stipulates that in case of bill being returned unpaid at any time the amount was recoverable from defendants 1 and 2. The Hundi no.28 dated 29/01/1993 was sent for collection of payment to Bank of India, Khan Market, New Delhi - 110003 by the plaintiff. Despite presentation of the said Hundi for payment, the payment was not forthcoming from defendant no.3. Bank of India informed that payment was not forthcoming and the captioned bill was returned. The plaintiff paid Rs.750.00 as handling charges to Bank of India, Khan Market Branch. Thus the Hundi was dishonoured upon presentation.

(2.) The plaintiff sent letter dated 2 3/06/1993 informing the defendants 1 and 2 about the fact that the Hundi dated 29/01/1993 remains unpaid as payment is not forthcoming from defendant no.3. Payment was demanded by the plaintiff alongwith interest and other charges from the defendants 1 and 2, Notwithstanding this fact none of the defendants have paid the money to the plaintiff. On account of the payment not forthcoming the O.B.D. amount alongwith Interest which was charged at quarterly rests was transferred to protested account on 7/01/1994.

(3.) It is further mentioned in the plaint that defendants 1 and 2 have become liable to pay Rs.5,37.116.26p as on 21/01/1996 which is the amount due inclusive of interest. Plaintiff has charged compound interest at the rate specified by Reserve Bank of India from time to time at quarterly rests. A further amount of Rs.750.00 is claimed as handling charges as paid to Bank of India, Khan Market Branch, by the plaintiff for presentation of Hundi.