SYNDICATE BANK Vs. BEGUM INTERNATIONAL

JUDGEMENT

(1.) Syndicate Bank, Asaf Ali Road, has filed a suit for recovery of Rs. 5,42,314.31p. through its Chief Manager and Principal Officer Sh. K.G.P. Pillai. He also claims to be duly constituted attorney of the plaintiff Bank and titled to institute the suit. He is the person who has signed and verified the plaint. I.I. M/s. Begum International, a partnership firm comprising of two partners, namely, S. Krishna Sharma and S. Ravi, availed credit facilities under the following three heads:

(2.) The defendants have contested the suit inter alia on the-ground that the suit has neither been signed nor verified nor filed by duly authorised person. It has been denied that K.G.P. Pillai is Principal Officer and Chief Manager of the plaintiff Bank at its Asaf Ali branch and duly constituted attorney. It has been denied that any Over-draft facility and any Packing Credit facility as detailed in para 'C' of para- 4 was asked for by the defendants. It is also denied that defendant No. 1 has executed any documents through any alleged guarantors. It has further been denied that defendant No. 1 has executed any documents or promissory note as has been stated in para 5. Similar denial has been made in respect acknowledgements. It is further denied that transaction between the parties was a commercial transaction. It is claimed that defendant No. 1 had taken some loan from the plaintiff Bank for the purpose of establishing advancement of cottage industry in the country in the shape of batik prints and batik paintings and as per the Reserve Bank of India regulations, the Bank cannot charge interest more than the simple interest of 11% per annum. The bank has with malafide intentions and wrongly tried to charge interest over and above that rate.

(3.) The plaintiff Bank has filed replication reiterating its case and alongwith allegations made in the written statement.