CHHOTALAL CHHAGANRAY Vs. BANK OF INDIA

JUDGEMENT

(1.) THE appellantsoriginal defendants are aggrieved by judgment and decree dated 10th January 1994 decreeing a sum of Rs.71,934/ with interest of Rs.13,873/ till the date of the suit and further interest @ 6% per annum from the date of the suit till 30.12.1988 and @18% per annum from 1st January 1989 till realization, in Summary Civil Suit No.2697 of 1985 instituted in City Civil Court, Ahmedabad.

(2.) A Summary Civil Suit No.2697 of 1985 came to be instituted by original defendantrespondent herein with a pleading that the Sarangpur Cotton Manufacturing Company Ltd was inter alia granted various borrowing facilities at Ahmedabad including documentary usance bills and/or local bills discount facilities by the plaintiff i.e. the State Bank of India in consortium against various security since the year 1968 or there about. One of the facilities was documentary usance bills and/or local bills discount facilities with a limit of Rs.67 lakhs plus Rs.55 lakhs. Under such facilities, the plaintiff was entitled to discount documentary usance bills and/or local D.A. Bills drawn by the company on its various constituents and customers, duly accepted by such customers and made payable to the plaintiff at Ahmedabad. By discounting such bills, the plaintiff granted advances against them to the company. The plaintiff thus became the holder in due course for valuable consideration. On the dates of maturity of the bills, respective drawees were required to pay to the plaintiff's amount of bills with interest.

(3.) IT is pleaded that on presentation, the bill in question was dishonoured. The plaintiffrespondent herein therefore got noted a protest by Notary Public G.S. Vyas on 05.04.1985, who visited office of the defendant No.1. The appellants, at the request of the plaintiff, presented the said bills for payment. It is pleaded that the appellants defaulted.