CORPORATION BANK Vs. ELECTRICAL ENGINEERING CORPORATION

JUDGEMENT

(1.) The plaintiff has filed this suit for recovery of Rs. 1,46,338.11 with costs and interest thereon. The plaintiff Bank is a body corporate with perpetual successive and a common seal, with powers subject to the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1980 to acquire, hold and dispose of property, to contract and to sue and he sued in its name and has its head office at Mangalore (Karnatka) and a branch office at M-41, Connaught Circus, New Delhi-110001, Shri P.P.Kamath who has instituted the suit and signe and verified the plaint is the Chief Manager and Principal Officer of the plaintiff Bank and has been authorised to institute proceedings on behalf of the plaintiff by virtue of power of attorney executed in his favour. He is duty conversant with the facts of the case and competent to depose with respect thereto.

(2.) Defendant No.1 is a partnership concern which was constituted at will carrying on business of manufacture of Ceiling fans. Joginder Singh Walia died in or about January, 1985 and his wife, defendant No.6, is alleged to have succeeded him in the partnership as the continuation of business of partnership was not disputed by other partners at any time thereafter. Defendants 4 and 5 who are related to defendants 2 and 3 guaranteed the due repayment of the facilities forming the subject matter of the suit.

(3.) The brief facts are that the defendant firm opened an account with the plaintiff Bank in or about November, 1984 to grant them financial assistance for purchase of machines, equipment tools etc. and for purchase of raw material/stock in trade to carry on the business. The plaintiff Bank allowed defendant No.1 firm to avail Cash Credit Limit in the sum of Rs.50,000.00 and in lieu thereof the defendant firm, its then partners and defendants 4 and 5 executed and delivered to the plaintiff the following documents: