PUNJAB AND SIND BANK LIMITED Vs. LABH SINGH

JUDGEMENT

(1.) History of this case starts from June 21, 1994 when defendant No. I took a loan of Rs. 56,000.00 for purchase of a truck against its security and hypothecation and on surety and guarantee of defendant No. 2. Whereas defendant No. I executed the agreement of hypothecation. Demand Promissory Note besides other documents undertaking thereby to pay the loan amount on demand together with interest, defendant No. 2 executed letter of guarantee standing surety and guarantor for the refund of the loan amount and interest thereon at the agreed rate. The grievance of the plaintiff Bank is that defendant No.l made only two payments one of Rs. 2,200.00 onDecember 17, 1974 and the second of Rs. 2,500.00 on July 1, 1976 and thus committed default in payment of the amount of the Demand Promissory Note, interest and other charges. Hence this suit for the recovery of Rs. l,09,991.50p. inclusive of interest.

(2.) Defendant No. 2 was proceeded against ex-parte.

(3.) Defendant No. 1 has contested the suit.