INDIAN BANK Vs. MAHMOHAN SINGH SOOD

JUDGEMENT

(1.) This suit for recovery of Rs. 1,23,155/65p has been filed on the averments that the plaintiff is a bank constituted and functioning under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1970. Name of the plaintiff-Bank appears in the First Schedule of the said Act. Plaintiff Bank has its registered office at 31, Rajaji Road, Madras and one of the branches is at West Patel Nagar, New Delhi. By virtue of a Power of Attorney. B. Natarajan has been authorized to sign and verify the plaint and to institute the suit on behalf of the plaintiff-Bank. It is further alleged that defendant No. 1 was granted medium term loan of Rs. 76,000.00 for purchase of a motor vehicle on April 9, 1987 and he executed pronote in the said sum of April 9, 1987, agreeing to repay the loan amount with interest @ 7.5% over the official rate of Reserve Bank of India with a minimum of 17.5% per annum Defendant No. 1 also hypothecated the vehicle to be purchased with the plaintiff- Bank and executed an agreement of hypothecation on the aforesaid date. Defendant No. 2 became a guarantor for defendant No. 1 under an agreement of guarantee executed on February 23, 1990. He also confirmed on February 23, 1990 that a sum of Rs. 1,18,365/13p was due from defendant No. 1 which he had undertaken to repay. It is stated that now a sum of Rs.1,23,155/65P is due from the defendants including interest calculated upto March 28, 1990 which they have failed to pay despite service of the legal notice. Plaintiff is entitled to claim future interest @ 17.5% per annum quarterly rest being the contractual rate. It was prayed that a decree for Rs.1,23,155/65p with pendente lite and future interest @ 17.5% per annum may be passed in favour of the plaintiff and against the defendants.

(2.) Both the defendants were proceeded ex-parte.

(3.) On the application of the plaintiff-Bank three legal representatives of defendant No. 2 who dies during the pendency of the suit were brought on record by the order dated January 20,1997.