STATE BANK OF INDIA Vs. UNITED TENT COMPANY

JUDGEMENT

(1.) In addition to a decree for Rs. 1,95,024.70 claimed by the plaintiff with costs of the suit and future interest at 16% p.a. decree has also been prayed for the sale of the property situated at C-40/l,Nai Basti, Seelampur, Delhi and at No.3/28, Punjabi Bagh Extension, Delhi.

(2.) Plaintiff's case is that defendant No.1 is a partnership firm carrying on business of manufacture,, sale and supply of tents to Government departments. defendants 2,3 and 4 are its partners. Late Shri Panna Lal Suri was also one of the partners, who has since died and has left behind defendants 2 to 5 as his heirs, who have also inherited the estate of Panna Lal. On 22nd September, 1989, on request of Shri Panna Lal Suri, a loan with limit of Rs.15,000.00 against bills was sanctioned by the plaintiff-Bank. A cash credit limit of Rs. 15,000.00 was also sanctioned on 17th December, 1969 and the limit of Over-Draft against bills was increased to Rs. 35,000.00 from 8th January, 1971. Previous transactions conducted by Shri Panna Lal were duly ratified by the other partners on 18th July, 1973. When the business expanded, limits were enhanced as regards Over-Drafts against bills to Rs. 70,000.00 and against cash credit to Rs.l,00,000.00 . Various loan documents were also executed. As a part and parcel of the same transaction, limit of equitable mortgage created by the 5th defendant earlier was also increased to Rs. 1,70,000.00 from Rs. 35,000.00 . Plaintiff has also in para-12 of the plaint given the particulars of the mortgage for securing the loan against the two immovable properties. It is alleged that on 15th September, 1980, a sum of Rs. 2,22,67 S.95 was due. Till 2nd February, 1981, a sum of Rs. 60,000.00 was paid and to the balance of Rs. 1,62,676.95 interest accrued due from 15th September, 1980 to 2nd February, 1981 when added the total amount to Rs. 1,95,024.70, the defendants have failed to pay and thus decree has been claimed against all the defendants.

(3.) Defendant No. 2 was proceeded against ex parte on 17th April, 1990. Other defendants were duly represented, who contested the suit and filed written statements on which issues were framed bui on 17th October, 1994, defendants 3, 4 and 5 for themselves and for defendant No.1 made a statement conceeding that as on 15th September, 1980, a sum of Rs. 2.22.676.95 was due and payable by them. Rs. 60,000.00 had been paid thereafter and a sum ofRs. 1,62,676.95 was still due and payable. It was also stated by them that since business of the firm was closed, therefore, they are not liable to pay interest and prayed that some relief in the payment of interest be granted.