PRAKASH CINNING FECTORY Vs. BANK OF BARODA

JUDGEMENT

(1.) THESE two appeals arise from common judgment and decree dated 30.09.1991 in Special Civil Suit No.91 of 1985 passed by learned Civil Judge (S.D.) Rajkot. Therefore, they are being disposed of by this common judgment. First Appeal No. 2043 of 1992 is preferred by original defendants M/s. Prakash Ginning Factory and others, and First Appeal No.2200 of 1992 is by the Bank of Baroda, original plaintiff.

(2.) THE original plaintiff had instituted Special Civil Suit against the defendant partnership firm for recovery of Rs.16,77,538.53 ps with interest, being the dues of the Bank arising out of the advance facilities granted by the Bank to the defendant firm by way of cash credit pledge, cash credit hypothecation and the term loan, upon application of the defendant for getting such advances for its business of ginning cotton and cottonsheets. It was the case of the plaintiff Bank that the defendant having neglected and failed to regularly repay the dues in respect of the loan amounts, Rs.3, 33, 283.00 ps. had become due towards the term loan, Rs.3,95,764.03 ps. towards cash credit hypothecation and Rs.9,48,491.50 ps towards cash credit, all inclusive of interest, totaling the amount of Rs.16,77,583.53 ps. remained due and payable. It was contended that the defendants were jointly and severally liable to the plaintiff Bank for the said amount with further interest at the rate of 20.5%.