MONNET FINANCE LTD Vs. RATTAN LAL GARERA

JUDGEMENT

(1.) THE subject suit has been filed by the plaintiff for recovery of Rs.3,02,70,732/ - against the two defendants, and who are the guarantors. Only the guarantors are sued inasmuch as the liability of the guarantors/defendants is averred to be joint and several with the principal borrower. The principal borrower M/s H -Lon Hosiery Ltd -company has not been sued inasmuch as it has already gone into liquidation.

(2.) THE facts of the case are that the plaintiff granted to the company - M/s H -Lon Hosiery Ltd lease of equipments under the lease agreement dated 7.12.1995 (Ex.PW1/3). The equipment which was leased was for a total amount of Rs.1,42,41,700/ -, and which amount was to be repaid with interest in instalments with machinery being security against repayment. The defendants executed the guarantee letters dated 7.12.1995, Ex.PW1/6 and Ex.PW1/7, agreeing to make the payment in case of a demand being raised upon the guarantors on the default in repayment committed by the principal borrower. The maximum amount payable under each of the guarantee agreement was Rs.1,94,00,000/ -.

(3.) 7.09.96 to 6.12.96 7.09.96 13,17,358.00