PUNJAB NATIONAL BANK Vs. PIONEER OVERSEAS

JUDGEMENT

(1.) This suit was filed by the plaintiff-Punjab National Bank on 5.2.1996 against the defendants for recovery of a sum of Rs. 8,93,197.95 with interest @ 20.25% per annum. The plaintiff is a body corporate winder the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. The defendant No. 1 is a sole proprietorship concern which carries on the business of manufacture & sale of woollen and acrylic yarns used in hand-knitting and machine knitting and the defendant No. 2 Smt. Neelu Singh is the sole proprietor of defendant No. 1.

(2.) The plaint on behalf of the plaintiff inter alia avers as follows : Defendant Nos. 3 to 5 are stated to be the guarantors and defendant No. 4 is also stated to be the mortgagor of property No. 38, DLF Industrial Area, Kirti Nagar, New Delhi. It is also averred that one Smt. Satwant Kaur who was also a guarantor had died and defendant Nos. 2 to 4 are her legal heirs and are also liable in that capacity.

(3.) It is averred that defendant No. 1 was earlier a partnership firm and was enjoying credit facilities from the plaintiff. This firm was dissolved on 31.3.1989 and defendant No. 2 took over the assets and liabilities of defendant No. 1 as a Sole Proprietor thereof.