CENTRAL BANK Vs. SETH BROTHERS

JUDGEMENT

(1.) This is an application moved by the defendants 1 to 3 under Sec. 151, Code of Civil Procedure wherein they have prayed for the recalling of the order dated 22.5.1995, transferring the present suit to the Debt Recovery Tribunal in view of the valuation being more than Rs. 10 lacs.

(2.) The plaintiff, Central Bank of India has filed the present suit for the recovery of Rs. 27,99,398.00 on account of credit facilities, overdraft limits and open loan availed of by defendants. The amount includes claim for interest also. Defendant No. 1 is the partnership firm. Defendant Nos. 2 and 3 are the partners, while the defendant No. 4 is the guarantor. Pleadings and admission/denial of documents has been completed.

(3.) Defendants denied their liability alleging several acts of omission and commission by the Bank officials. The defendants questioned the action of the plaintiff-Bank in recalling of the loan, freezing of account, when it had hypothecated stocks of over Rs. 30 lacs apart from other securities, fixed deposits receipts and L.I.C. policies of over Rs. 30 lacs, against a debit balance of only Rs. 20 lacs. Apart from the foregoing, the defendant Nos. 1 to 3 have specifically raised a counter claim claiming Rs. 5 lacs as damages inter alia on the failure of the plaintiff to obtain necessary insurance cover, which was stated to be the obligation of the plaintiff. The defendant Nos. 1 to 3 had alleged that the plaintiff Bank committed various acts of omission and commission and failed to release the stock that had reached the date of expiry. Replication as well as reply to the counter claim has been filed. Pleadings have been completed and admission/denial of documents has also been completed.