CANARA BANK Vs. DACRON MANUFACTURERS

JUDGEMENT

(1.) This is a suit for recovery of a sum of Rs.3,72,297.15 together with pendente lite and future interest @ 16% p.a. with quarterly rest and inclusive of 2% of penal interest from the date of suit till realisation of the amount

(2.) The facts of the case briefly stated are that the plaintiff is a Banking Company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its branches spread all over India. Shri B.K. Shekar Shetty is one of the principal officers of the plaintiff bank and Senior Manager of a Branch of the Bank situated at F-19, Connaught Circus, New Delhi. He is duly authorised to sign and verify the plaint and to institute the present suit and in this regard he holds a power of attorney from the plaintiff Bank.

(3.) As per averments made in the plaint, defendant No.2 representing himself as Sole Proprietor of defendant No.l approached the plaintiff Bank for grant of open Cash Credit limit to meet its working capital requirements. Defendant No.3 who is the father of the defendant No.2 offered to and stood personal guarantee for the repayment of the entire loan amount advanced or to be advanced to the defendants 1 and 2 besides interest and other charges.