CENTRAL BANK OF INDIA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a suit for recovery of Rs. 2,60,303.90 withcosts and future interest @ 16.5% p.a. with quarterly rests from the date ofthe institution of the suit till the date of its realisation.

(2.) The facts of the case briefly stated are that the plaintiff is a Bankconstituted under the Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1970, having its Central Office at Chander MukhiNariman Point, Bombay and a Branch amongst others at Naya Bazar,Delhi-110006. Shri Chandra Dev Kashyap is the Assistant Regional Managerand Genera Attorney (North) of the Plaintiff Bank. He is duly authorisedto sign and verify the present plaint and to institute the present suit. In thisregard he holds the power of attorney from the Plaintiff Bank.

(3.) As per averments made in the plaint, the defendant No. 2 who isthe proprietor of defendant No. 1 opened a Current A/c. bearing No. 3380with the Plaintiff Bank in the name of defendant No. 1. At the request ofthe defendants 1 and 2, the facility of overdraft was granted by the "PlaintiffBank and the said defendants availed this facility by drawing the followingcheques favouring one M/s. R.M. Enterprises. <FRM>JUDGEMENT_393_DLT52_1993Html1.htm</FRM> It is further stated in the plaint that despite repeated requests and remindersdefendants 1 and 2 have failed to pay/adjust the outstanding dues of theplaintiff.cIt has also been stated in the plaint that the defendant No. 2 forself and as Proprietor of defendant No. 1 executed a Demand PromissoryNote dated 24/09/1987 in the then outstanding balance in the sum of Rs.1,78,790.00.