STATE BANK OF INDIA Vs. J S SOHATA

JUDGEMENT

(1.) The present suit has been filed by the plaintiff Bank for the recovery of Rs. 5,31,552.00 averring that the plaintiff Bank is a statutory body, constituted by the State Bank of India Act, 1955, having its Central Office at Bombay and one of its Local Head Office at 11, Parliament Street, New Delhi and amongst others a branch office at Kapashera, New Delhi. It is stated that Shri V.K. Aggarwal, Branch Manager and Principal Officer of the plaintiff Bank is duly authorised to sign and verify the plaint and to institute the present suit on behalf of the plaintiff Bank.

(2.) It is stated that defendant No. 1 is the sole proprietor of a firm styled as M/s. Solar System, engaged in the business of manufacturing a variety of systems employing alternative sources of energy. It is averred that on 3rd May, 1986, defendant No. 1 being the principal borrower and defendant Nos. 2 and 3 being the guarantors requested for and were granted two loan facilities in the form of cash credit of Rs. 2,45,000.00 and a 'Working Capital Medium Term Loan' of Rs. 88,725.00 for the purpose of the business of defendant No. 1 upon executing the relevant and necessary documents including the Demand Promissory Note, Guarantee Agreement, Agreement for Cash Credit etc. It is stated that after the execution of the necessary documents the facilities thereby granted were availed of by defendant No. 1.

(3.) It is further the case of the plaintiff Bank that at the request of the defendants two further facilities in the form of 'Machinery Medium Term. Loan' of a sum of Rs. 18,000.00 and a 'Medium Term Loan' for the purchase of Scooter of Rs. 8,000.00 were granted to the defendants on 13th December, 1986 and 4th August, 1986 on the execution of the necessary documents. It is alleged that defendants No. 2 and 3 also signed the loan documents as guarantors and thus made themselves liable for the repayment of the loan amount. It is stated that the above mentioned two facilities were also utilised by defendant No. 1.