PUNJAB NATIONAL BANK Vs. AMARPALSING KULTARSINGH BHAMARA

JUDGEMENT

(1.) . This is an instance of stay granted by a court which in my opinion is not warranted by law.

(2.) . The petitioner-bank had filed a suit for recovery of Rs. 2 67 593.6 plus interest thereof. The allegation was that respondent No. 1 had applied for loan on 19-6-1989 for the purpose of purchasing of Tata Mercidise Chesis. A loan of Rs. 2 65 0 was sanctioned and the same was availed by the respondent No. 1 after he had executed several documents including a letter of hypothecation. According to the terms of the loan the sum was to be repaid in 42 monthly instalments of the Rs. 6310.00 plus interest each. The entire loan amount was required to be repaid on or before March 1993.

(3.) . When the payment was not made regularly the plaintiff-bank wrote a letter dated 26-2-1991 requiring the said respondent to regularise the loan account. This was followed by another letter dated 27-7-1992 whereby the bank demanded entire amount due of the term loan from the respondents. When the money was not paid the present suit was filed for a sum of Rs. 2 67 593.6 plus interest thereof.