UNITED COMMERCIAL BANK LIMITED Vs. DEEKOR

JUDGEMENT

(1.) This is a suit filed by abank for recovery of Rs.1,17,050 77Pwith future interest @ 19.50% p.a. on Cash Credit Facility Account and B.P. Account.

(2.) . According to the plaintiff, the defendant No.1 is a partnership-firm. Lateron it was converted into a sole proprietorship concern of defendant No. 2. Thedefendant No. 3 is the father of defendant No.2. He had stood guarantor forrepayment of all dues against the defendants Nos. 1 and 2. The plaintiff-Banksanctioned two facilities to the defendants 1 to 2. One was a Cash Credit Hypothecation Limit. The other was Bill Purchase Limit. In the Cash Credit HypothecationLimit, the defendants 1 and 2 executed a Pro-note dated 27.8.77 for Rs. 30,000.00 infavour of the plaintiff. The same was renewed from time to time. The defendant No.3 executed a guarantee bond dated 1.5.79. The defendants land 2 drew thefollowing Hundies in favour of the plaintiff-Bank on defendant No.4 - <FRM>JUDGEMENT_45_DLT57_1995Html1.htm</FRM> The defendant No.4 had accepted the hundies but the Hundies were nothonoured on their due dates.

(3.) . It is further stated that as per the accounts books of the plaintiff, there wasdebit balance of Rs. 50,570.46 P in the Cash Credit A/c. inclusive of interest upto15.7.82. The defendants Nos. 1 to 3 were jointly and severally liable to pay the saidamount. In the B.P. Account there was an outstanding balance of Rs. 66,480/31Pinclusive of interest upto 15.7.82 which the defendants 1 to 4 were jointly andseverally liable to pay.