STATE BANK OF INDIA Vs. PREM SETHI

JUDGEMENT

(1.) The plaintiff Bank has filed this suit under Order 34, Rule4, Civil Procedure Code for recovery of Rs. 5,14,565.00 together with interest thereon @ 17% per annum.

(2.) Briefly stated, the plaintiff's case is that on 1st December, 1990, the plaintiff Bank granted to the defendant No. 1 Medium Term Loan of Rs. 1,89,000.00 and the Cash Credit Limit of Rs. 1.00 lac. The defendant No. 1 agreed to liquidate the loan amount in monthly instalments of Rs. 3,938.00 together with interest. The first instalment became due on 25th December, 1990. In order to secure payment of the loan, the defendant No. 1 executed a demand promissory note and other documents in favour of the plaintiff Bank. The defendant Nos. 2 and 3 guaranteed repayment of the said loan vide agreement dated 28th December, 1990. The defendant No. 3 also created an equitable mortgage by deposit of title deeds in respect to his property bearing plot No. 16, Sanjay Nagar, Part I, Delhi for repayment of the said loan. After availing of the said loan facility, the defendant No. 1 failed to keep the banking discipline and his account had remained very irregular. As per statements of account, a sum of Rs. 5,14,565.00 stands due from the defendants to the plaintiff including the interest and other incidental charges charged in the account. Hence this suit.

(3.) Despite service, the defendants did not appear before the Court and the case proceeded ex parte against them. The plaintiff Bank has filed the affidavits of Shri H.L. Yadav and Shri T.N. Goel in support of its claim. On a consideration of the affidavits of the said witnesses and the documents Exhibits Public Witness Public Witness 1 /1 to Public Witness Public Witness 1 /9 and PW 2/1 to Public Witness Public Witness 2/7,1 find and hold that the plaintiff Bank has prima facie proved its case for recovery of Rs. 5,14,565.00 with interest thereon @ 17.25% per annum.