PUNJAB AND SIND BANK Vs. HIRA POULTRY FARM

JUDGEMENT

(1.) The plaintiff has filed this suit for recovery of Rs. 1,25,214.00 with costs and interest thereon.

(2.) The plaintiff is a body corporate with perpetual succession, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act (40) of 1980. It has its Head Office at 21, Rajendra Place, New Delhi and can sue and be sued in its name and has a branch office at G.T. Road, Alipur Block, Singhola, Delhi. Shri Narinder Bir Singh and Shri Ram Singh, Regional Manager and Manager respectively and principal officers of the plaintiff-Bank are fully conversant with the facts of the case and they hold Powers of Attorney and are duly authorised and empowered by the plaintiff-bank to sign and verify the pleadings, file and suit and documents. The defendant No. 1 M/s. Hira Poultry Farm, is the proprietorship firm of the defendant No. 2, Mr. Balvinder Jit Singh.

(3.) It is alleged that defendant No. 1 through its proprietor, introduced itself to the plaintiff-Bank in April, 1981 as a firm engaged in the business of poultry. The defendants requested the Bank to grant them financial facilities to enable them to carry on their business activities. They agreed to offer security by way of mortgage of immovable property measuring 2 bighas 8 biswas bearing Khasra No. 57/11/3(1-0) and 57/12/(l-8) with the superstructure thereon, situated at Village Mamoorpur, Narela, Delhi and hypothecation of entire stock of birds (livestock), poultry equipment, machineries, instruments, feed, medicines other materials and accessories besides the personal surety and guarantee of the defendants 3 and 4, for the repayment of such loans as would be granted by the Bank. It is further alleged that defendant Nos. 1 and2beingthefirmand itsproprietor,requested forfinanc:al assistance to the extent of Rs. 44,000.00 and for grant of the same, mortgaged the aforementioned immovable property with the Bank by a registered mortgaged deed dated August 25,1981.The Bank considered the request of the said defendants and granted facilities by way of Terms Loan to the extent of Rs. 30,000.00 and Cash Credit to the extent of Rs. 14,000.00 .Thedefendantsstartedavailingofthecash credit first and operation of this account began in November, 1981. In consideration of the grant of this facility, defendant No. 2 as proprietor of and for on behalf of the defendant No. 1, executed and delivered the following loan documents :