CORPORATION BANK Vs. VENUS TRADERS

JUDGEMENT

(1.) Corporation Bank has filed a suit for recovery of Rs. 5,11,162.50 Paise with interest and costs against M/s. Venus Traders (Defendant No.1 ) a partnership firm of which Shri Subodh Gupta, (Defendant No. 2) since deceased, and his mother Smt. Suman Gupta Defendat No. 3 were parters. Shri Ramesh Garg, Defendant No. 4 is impleaded as the Guarantor. It is alleged in the Plaint that the Plaintiff Bank had acceded to the Defendants' request for a Cash Credit (hypothecation) limit of Rs. 3,00,000.00 (Rs. Three Lakhs only) to Defendent No.1, through Defendants 2 and 3 as its parteners and guarantors. The sum of Rs. 3,00,000.00 is stated to have been disbursed by the Defendant No. 1.

(2.) Written Statement was filed and on the basis of them pleadings the following issues were framed: 1. Whether the suit has been duly signed, verified and instituted by the Plaintiff? 2. Whether the suit is barred by limitation? 3. Whether the Defendant signed various blank documents, if so, to what effect? at 4. Whether Plaintiff is entitled to any amount, if so, what amount and from -c which defendants? 5. Whether Plaintiff is entitled to interest, if so at what rate? 6. Relief.

(3.) Subsequently on 18.3.1998 learned counsel for the parties agreed that the case may be disposed of by filing affidavits and, accordingly, the Plaintiff was directed to lead evidence by way of affidavit within four weeks. The Defendants were allowed to file counter, affidavit within eight weeks. No affidavit has been filed by Defendant No. 3 despite several opportunities. On 8.7.1999 the Plaintiff's witness Shri P. K. Gupta, the Deponent in the affidavit by way of evidence, was present in court having come to Delhi from Ahmadabad. Liberty to cross-examine him was not availed of. On the subsequent date i.e. 4.10.1999, there was no appearance on behalf of the Defendants and they were proceeded ex-parte. I, therefore, heard arguments.