CANARA BANK Vs. KANCHAN INDUSTRIES & ORS

JUDGEMENT

(1.) This is a suit filed on behalf of the plaintiff Bank against the defendants for the recovery of a sum of Rs. 2,19,683.60 P. with costs and future interest @ 16% p.a. from the date of institution of the suit till realisation. Summons of the suit were issued to the defendants on 22nd September, 1989 for 29th November, 1989. On 22nd November, 1991, all the defendants were proceeded against ex-parte as none appeared on their behalf despite service. On the same date, the plaintiff was permitted to file affidavit by way of ex-parte evidence within eight weeks. Pursuant to this order, affidavits of Shri T.K. Mahalingam, Manager of the plaintiff Bank and Shri S.V. Parvani also Manager of the plaintiff Bank have been filed on behalf of the plaintiff bank. All the averments and allegations made in the plaint have been proved by these two affidavits.

(2.) Briefly stated the facts of the case are that the plaintiff Bank is constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. Sri T.K. Mahalingam, the Manager of the plaintiff Bank was the General Attorney of the Kalkaji Branch of the plaintiff Bank at the relevant time and he was fully authorised and competent to institute the present suit as well as to sign and verify the plaint on behalf of the plaintiff Bank.

(3.) It is stated in the plaint that in the beginning of 1987, the defendant No. 1 of which defendants 2 and 3 are the partners approached the plaintiff Bank for some financial facilities and at their request the plaintiff Bank granted the following credit facilities :-