SRP INDUSTRIES LTD Vs. KAY BEE & CO.

JUDGEMENT

(1.) The subject suit has been filed under Order 37 CPC for recovery of Rs 63,05,500/- against four defendants. The suit has already been decreed against defendant nos. 1 to 3 on account of their having failed to file appearance in terms of Order 37 CPC. Defendant nos. 1 to 3 are the main persons who had taken amounts from the plaintiff or guaranteed the repayment. The present suit is now to be decided only qua the liability of defendant no. 4-State Bank of Saurashtra.

(2.) The facts of the case are that the plaintiff claimed that defendant nos. 1 to 3 approached M/s Sunrise Polycon Ltd. , an amalgamated company of the plaintiff for financial accommodation for an amount of Rs 60,00,000/- bearing interest at 18% per annum. Loan was granted for a period of six months. The plaintiff claims that defendant nos. 1 to 3 represented that they had financial limits from the defendant no. 4- bank, and which would co-accept the Bill of Exchange.

(3.) Defendant no. 4 has contested the suit and pleaded that it never coaccepted the Bill of Exchange dated 30.3.1994. The bank denied having issued the letter dated 30.3.1994 for payment of amount of Bill of Exchange. Defendant no. 4 pleads that the two letters dated 24.3.1994 and 30.3.1994 alleged to have been issued by defendant no. 4 were never issued by defendant No. 4 and this becomes clear from the fact there are no reference numbers of the bank in these letters, and which were bound to be there if these were authorised letters of the bank.