PUNJAB NATIONAL BANK Vs. TOY LAND OF INDIA

JUDGEMENT

(1.) This is plaintiffs' suit instituted on 8.7.1984 for recovery of Rs. 6,19,460.87.00 on account of principal and interest. Besides personal decree, the plaintiff Bank has prayed for a preliminary decree under Order 34 Civil Procedure Code . for sale of the mortgaged security.

(2.) Loan facility was availed of by Defendant no.2, the sole proprietor of Defendant no. 1 on the basis of various loan documents executed by him. In order to secure the repayment of the loan amount, the immoveable property was equita.bly mortgaged. In addition the loan amount was also secured by hypothecation of finished and semiinished goods. The suit was cont ested by Defendants, who denied liability to pay the suit amount. It was pleaded that loan documents were not executed by Defendant no.2. His signatures were obtained on blank printed forms. Liability to pay interest was also disputed. Issues were framed on 9. 5.1989. The suit was set down for trial.

(3.) Defendant no.2 expired on 28.9.1990. His legal representatives were ordered to be brought on record by an order passed on 26.11.1993 in i.A. 10584/90. It is not disputed that the estate of the deceased, including the property which was equitably mortgaged to secure the repayment of the amount, has been inherited by the legal representatives.