SYNDICATE BANK Vs. NONA CONA EXPORTS

JUDGEMENT

(1.) This is a suit for the recovery of a sum ofRs. 6,27,044/09 together with pendente lite and future interest under Order 37 Civil Procedure Code . The case of the Plaintiff is that the plaintiff is one of the nationalised banks with its Head Office at Manipal, State of Karnataka, and Branches all over the country with a Branch at F-40, Connaught Place, New Delhi. Mr. S. Ramchandran is the Divisional Manager and General Power of Attorney holder on behalf of the plaintiff. He is also the Principal Officer of the plaintiff bank and is, as such, competent to sign and verify the plaint and to institute the present suit. The defendant No. I is a company under the companies Act. 1956 with its Registered Office at S-81, Panchsheel Park, New Delhi. The defendant No.2 is the Managing Director of the said company and the defendant No. 3 is the wife of the second defendant. She is also a director of the defendant company. The defendant No. I through the defendant No.2 requested the plaintiff bank for certain credit facilities by way of packing credit and the plaintiff bank granted the said facilities.

(2.) The defendants during the period from May 30, 1979 to December 26,19/9 availed of 11 packing credit loans for different amounts. The said amounts are still outstanding against the defendants. Defendant No. 2 on May 30, 1979 as Managing Director of the defendant No.2executedademandpromissorynote wherethrough the defendants No. I and2jointlv and severally promised to pay to the plaintiff bank a sum ofRs. 1,13,000.00 with interest at the rate of 2% above the Reserve Bank of India rate with a minimum of 11% per annum compounded quarterly. The defendant No. 2 as Managing Director of defendant No. I also addressed a letter wherein they promised to repay the amount within 90 days from the date of the credit of the amount to their current account. The plaintiff bank credited a sum ofRs. 1,13,000.00 to the current account of the defendant No. I and the defendants withdraw the said amount from time to time. Subsequently, defendants No.2 and 3 on June 14,1979 entered into an export credit agreement with the plaintiff bank. Under the said agreement the plaintiff bank agreed to lend to the defendants from time to time sums of money upto a limit of Rs. 6,02,000.00 . The defendant No.2 as the Managing Director of defendant No. 1 in

(3.) consideration of and to secure repayment of ten packing credit loans executed the documents mentioned in para 9 of the plaint. The defendants failed to repay the above amount despite repeated demands and requests. A sum of Rs. 6,27,044/09 is due to the plaintiff from the defendants for the period ending August 3,1980, including interests. The defendants No. 2 and 3 executed separate agreements of guarantee whereunder they agreed to pay and satisfy to the Syndicate Bank on demand all and every sums of money which are or at any time due to the plaintiff bank. Hence, arose the necessity for the institution of the present suit.