CANARA BANK Vs. ASHOK KUMAR PRUTHI

JUDGEMENT

(1.) The plaintiff has filed a Suit for recovery of Rs. 1,18,896-95P. Defendant no.I applied for certain credit facilities. After considering his proposal, the plaintiff bank sanctioned him the credit facilities in the nature of Open Cash Credit and Cheque Discounting. In February, 1984, defendant no.1 requested for the credit facilities to the extent of Rs.75,000.00 . The plaintiff bank considered his proposal and sanctioned credit facilities to the' extent of Rs.25,000.00 .

(2.) Defendant no.l acknowledged his debt and security in writing on 10th January, 1986 to the extent of Rs.69,565.45P. The defendant also executed the following fresh set of loan and security documents alongwith Shri Vijay Kumar and promised to pay the amount due to the plaintiff:-

(3.) According to the averments mentioned in para 9 of the plaint, on 15.1.1986, defendant no.1 admitted in writing and promised to pay the total outstanding in about 4 months' time. Number of requests were made and reminders were sent by the plaintiff to this effect. Ultimately, the plaintiff had filed this suit under Order XXXVII of the Civil Procedure Code before this court. The defendant appeared before this court and filed an application for leave to defend. He also filed affidavits of the defendants Ashok Kumar Pruthi and Vijay Kumar. In the affidavits of the defendants, .it is mentioned that the Senior Manager of the plainliff bank was not authorised and empowered to institte the legal proceedings against the defcndants. It is further mentioned the application under Order XXXVII, Rule 4, Civil Procedure Code does not disclose what sort of credit facilities were accorded to the defendants in the year 1980-81. It is further mentioned in the application thill the plaiiiliff obtained signature of the defendant on blank printed form, the contents of which were never made known to them. it is also incntioned in the application that the defendants have uo( committed any default in the payment of the instalments. In the concluding portion of the affidavit, it is mentioned that the defendants suffered losses in the business on account of untoward attitude of the plaintiff hank.