SKYLARK MOTORS Vs. LAKSHMI COMMERCIAL BANK LIMITED

JUDGEMENT

(1.) In this revision petition directed against a composite order rejecting application for leave to defend and decreeing the suit under 0.37 Code of Civil Procedure, two following questions arise for decision :

(2.) Relevant facts are as under : Laxmi Commercial Bank Ltd., plaintiff/ respondent filed a suit for recovery of Rs. 17,000.00 under Order 37, C. P.C. According to the Bank's case, on the request of defendant/ revision petitioner, cash credit facility to the limit of Rs.12,000.00 (bearing interest @ 9% above the RBI's rate of interest with a minimum of 17% per annum) was given, on execution of various documents, by the defendant / revision petitioner on 27th February, l980. A sum of Rs. 17,000.00 was found due against the petitioner on 30th November, 1991. As the defendant/ petitioner failed to pay the same despite notice, a suit under Order 37, C.P. C was filed by the plaintiff-respondent Bank.

(3.) The defendant filed an application for leave to defend the suit. It was contended that in February,- 1980 only a sum of Rs. 12,000/was due. Five cases containing goods worth Rs. 18,515.00were pledged in February, 1980. The defendant requested that these pledged goods should be sold by the Bank to clear the account. But the Bank failed to sell the goods. As such, the defendant/petitioner was not liable to pay any interest after February, 1980. At the time of filing of the application for leave to defend the value of the pledged goods would have been about Rs. 30,880.00. These pledged goods were allegedly destroyed by fire in April 1993. Accordingly, the defendant/ petitioner claimed that he was entitled to get Rs. 30,880 / - as the price of the aforesaid goods. The defendant/petitioner expressed his willingness to pay a sum of Rs. 12,000/ - in case he got back their pledged goods or price thereof amounting to Rs. 30,880.00.