BANK OF MAHARASHTRA Vs. G K ENTERPRISES

JUDGEMENT

(1.) The present appeal is directed against the judgment and decree dated 12th November, 2001 passed by the learned Additional District Judge, Delhi in Suit No.S-319/2001 whereby the suit filed by the appellant/plaintiff for recovery of Rs.2,21,354/-, on a count of interest, was dismissed.

(2.) The case of the appellant/plaintiff, as pleaded in the plaint, is that the respondent No.1, who was defendant No.1, had opened a bank account with the appellant bank branch. The said respondent/defendant No.1, along with respondents / defendants 2 and

(3.) who are the partners of respondent No.1/ defendant No.1, had also been maintaining a current account /cash credit account and had been conducting their banking business through the branch of the plaintiff bank from time time. It is alleged that the a foresaid respondents 1-3 , in connivance with the respondent N6.4 who was working as Branch Manager of the appellant bank at Dr.Mukerjee Nagar Branch, during the period from May, 1986 to September, 1991, entered into a criminal conspiracy, connivance an collusion and thereby allowed passing of cheques, vouchers and pay orders in order to provide assistance to respondents 1 to 3, who received the amount, causing financial loss to the appellant bank. It was also alleged that the amount was withdrawn from time to time by respondents 1 to 3 in connivance of respondent No.4 without getting any proper loan/cash facility sanctioned and without paying any interest, thereby causing revenue loss to the bank substantially. When the aforesaid fact was established through an investigation carried out by the appellant bank, it issued a letter dated 21st January, 1992 to defendants 2 to 4 to pay the due amount of interest on the aforesaid amount, which was withdrawn from the bank without any proper loan facility. Despite the service of the aforesaid notice to respondents 1-3, they failed to repay the outstanding interest and accordingly the aforesaid suit was filed. Respondents 1,2 and 4 filed their written statement. Subsequently, however, all the respondents failed to appear in the suit and, therefore, they were proceeded ex parte. On being permitted by the court, the appellant led ex parte evidence, during the course of which it examined Shri B.P.Gupta and Shri Mayank Bhushan Pandey, as PW1 and W2 respectively. The learned trial court thereafter heard the counsel appearing for the parties and by judgment and decree dated 12th November, 2001 dismissed the suit on the ground that there was no agreement to pay interest between the plaintiff and the defendants 1 to 3 and that defendant No.4 also could not be fastened with any liability to pay interest on account of any transaction in respect of which the present suit was filed. The statement of account was proved by the appellant bank as PW3/12.