BANK OF BARODA Vs. CHANDER VEER

JUDGEMENT

(1.) This is a suit for recovery of Rs.l,ll,686.11p with interest @ 15%p.a. from the date of filing of the suit till realisation.

(2.) The facts of the case briefly stated are that the plaintiff is a nationalised bank constituted under the Banking Companies (Acqui- sition and Transfer of Undertakings) Act, 1970 having its Head Office at 'Mandvi, Baroda and having one of its branches at l6. Parliament Street, New Delhi. Shri Veer Sain Mukhi is the Branch Manager and Principal Officer-cum-Constituted Attorney of the plaintiff bank. He is duly authorised to institute the present suit as well as to sign and verify the plaint in this case.

(3.) As per averments made in the plaint, defendant No.l is the borrower while the defendants 2 and 3 are the guarantors. Defendant No. 1 had taken a term loan from the plaintiff bank for purchase of mini bus and after the receipt of loan defendant No.l purchased a bus which was registered with the Transport Authorities having Registration No.DHP-198 make TMV. It is further alleged that defendant No.l failed to discharge the liability of term loan A/c. both towards principal and interest accrued thereon. It is also alleged that in consideration of past- existing libilities the defendant No.l had made an express promise to the plaintiff bank on 22nd April, 1981 to repay a sum ofRs.61,750.65p together with interest @ 12.5% p.a. and in consideration of the said - past-existing liability, the defendant No.l had executed demand promissory note for Rs.61,750.65p dated 22.4.81 carrying interest @ 12.5% p.a.chargable on quarterly basis and agreement of hypothecation of vehicle dated 22.4.81 whereby bus No.DHP-198 was hypothecated with the plaintiff bank as security.