SYNDICATE BANK Vs. U CHEM PHARMA PRIVATE LIMITED

JUDGEMENT

(1.) The Syndicate Bank is seeking a decree for the recovery of Rs. 1,45,480.00 against the defendants on the basis of an overdraft limit of Rs. 1,00,000.00 granted to defendant No.1 for its business to which defendants 2 to 4 were allegedly the guarantors. It is claimed that in consideration of the said overdraft limit a Joint Demand Promissory Note and other bank documents were executed by defendant No.1 while defendants 2 to 4 had executed letters of Guarantee undertaking to pay and satisfy the plaintiff Bank on demand all sums of money that may be due to it from defendant No.1 together with interest. The grievance of the plaintiff bank is that though the facility was availed of, the defendants failed to discharge their liability with the result that a sum of Rs. 1,45,480.00 has become due to it.

(2.) Defendants 1 to 3 filed their written statement. As per them neither they applied for overdraft facility nor availed of it and that their signatures were obtained on certain blank papers. As per them, the defendant No.1 had been duped by the Bank to take over the liabilities of M/s. Ganesh Enterprises and that the overdraft limit of rupees one lakh facility was actually the liability of that firm which was transferred to defendant No.1.

(3.) Defendant No.4 too in his written statement has denied his liability. As per him he never guaranteed due repayment of the over draft in question and that his signatures were obtained on blank guarantee deeds and other papers in connection with some other transaction and the same are being misused by the Bank.