JAMMU AND KASHMIR BANK LIMITED Vs. GARTEX INTERNATIONAL

JUDGEMENT

(1.) This is a suit for recovery of Rs.1,39,270.00. The case of the plaintiff is that defendants 2 & 3 as partners of defendant No. 1 had opened a current account with the plaintiff bank on September 23, 1977 and from time to time deposits and withdrawals were made in the said account No.268 and on request of the defendants, on October 11, 1977, the defendants were permitted to have over-withdrawals in the said account and the defendants were to pay interest at the rate fixed by the Reserve Bank of India in respect of the said over-withdrawals from time to time.

(2.) It is also averred that the defendants had undertaken to bring the said account to credit at least once a year and it is only on July 16, 1980 that account was brought to credit when come credit balance was shown in the account. It is also mentioned that last entry appearing in the account is dated December 22, 1981 when a sum of Rs.53,500.00 was credited in the account of the defendants. It is further averred that defendants on October 1, 1983 had executed a balance confirmation document admitting the debit balance as Rs.97,290.41 paise as on September 30, 1983. It is alleged that defendants had undertaken to repay the amount due in instalments but despite the letter dated December 26, 1983 issued by the plaintiff, the defendants did not bring the account to credit and after serving the legal notice dated May 4, 1984, the present suit has been brought for recovery of the aforesaid amount.

(3.) The defendants have contested the suit pleading that the suit is barred by limitation inasmuch as defendants had not executed any confirmation of balance documents, as alleged. It is also pleaded by the defendants that plaint has not been signed or verified and suit instituted by any duly authorised person on behalf of the plaintiff.