CANARA BANK Vs. NIRANJAN KUMAR NANGIA

JUDGEMENT

(1.) This is a suit for recovery of a sum of Rs. 3,76,507.12 together with pendente lite and future interest under Order 37 of the Civil Procedure Code.

(2.) Brief facts which gave rise to the present suit are as under that the plaintiff is a body corporate constituted by the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1979 with its registered offices at 12, J.C. Road, Bangalore and a branch at Gandhi Katra, Chandni Chowk, Delhi. Shri A.K. Makhija is the duly constituted attorney of the plaintiff. He is also a principal officer of the Bank. He is thus fully competent to sign and verify the plaint and to institute the present suit. The defendant is the sole proprietor of a business unit known as M/s. Fashion Fabrics, The defendant requested the erstwhile Lakshmi Commercial Bank for grant of certain credit facilities. His request was acceded to subject to the fulfilment of certain terms and condition as mentioned in para 3 of the plaint. The defendant opened a Cash Credit Pledge account with Chandni Chowk Branch of the erstwhile Lakshmi Commercial Bank in or about August, 1981 in the name of M/s. Fashion Fabrics. The defendant withdrew certain amounts from the said account. Likewise he also deposited certain amounts in the said bank. All the part payments made by the defendant in that Cash Credit account were appropriated by the Lakshmi Commercial Bank Ltd., towards the liquidation of the earlier debts and the outstanding in that account. The defendant acknowledged his liability to the tune of Rs. 2,72,798.07 vide his acknowledgment dated 13.8.84. On the same date he also accepted correctness of the account as maintained by him with the Bank. After application of the periodical interest and final accounting it was found that a sum of Rs. 2,53,893.37 was due to the plaintiff from the defendant as on 23.8.1985.

(3.) All the assets and liabilities of the Lakshmi Commercial Bank have been transferred to and taken over by the plaintiff w.e.f. 24th August, 1985 vide Central Government notification No. F.7/12/85-B.C.111(1), dated 23.8.1985. Hence, under the terms of the aforementioned notification the plaintiff-Bank is entitled to recover the above amount from the defendant. The defendant is also liable to pay interest at the rate of 19.5 % per annum. A sum of Rs. 1,22,613.75 is due to the plaintiff from the defendant on account of interest for the period from 1.7.85 to 31.7.87. In this way, the defendant is liable to pay a sum of Rs. 3,76,507.12. The plaintiffs are also entitled to pendente lite and future interest it the rate of 19.5% per annum.