STATE BANK OF INDIA Vs. JAGDAMBA PACKERE

JUDGEMENT

(1.) This is a suit filed by the plaintiff-Bank seeking recoveryof Rs.1,94,766.20p with costs and interest pendente lite and future calculated at therate of 14 per cent per annum with quarterly rests.

(2.) The defendant No. 1 is a partnership firm with defendants Nos. 2 to 4 as itspartners. Approached by the defendants Nos. 2 to 4, the plaintiff bank allowedcredit facilities to defendants on hypothecation of raw material, goods-finishedand semi-finished and machinery. The credit facilities extended by the bankwhereby way of cash credit hypothecation limit. Other defendants had stood assureties.

(3.) It is not necessary to make a detailed discussion of the defence raised andseveral documents brought on record because of major part of the controversybetween the parties having been settled amicably during the course of theseproceedings because of the defendants having taken a very reasonable stand andadopted a compromising attitude. On 16.10.90, the defendants stated before theCourt that they were prepared to pay the suit amount on the condition of theinterest pendente lite being waived. It was further stated that a sum of Rs. 25,000had already been paid to the plaintiff-bank on 26.8.89, i.e., during the pendency ofthis suit. What exactly transpired on 16.10.90, it would be better to read from thefollowing extract of proceedings as recorded by the Court :