CENTRAL BANK OF INDIA Vs. ANTONY HARDWARE MART

JUDGEMENT

(1.) THE defendant in O. S. No. 8937 of 1986 on the file of the XV-th Assistant Judge City Civil Court, Madras is the appellant in A. S. No. 569 of 1989. The plaintiff in O. S. No. 8937 of 1986 on the file of the same Court is the appellant in A. S. No. 834 of 1989.

(2.) FOR the sake of convenience, the parties are referred to as per their ranking in the suit.

(3.) THE plaintiff filed a suit for decree against the defendant for a sum of Rs. 39,030. 90 with interest at 17. 5% per annum from the date of suit till date of realisation on the basis of the following averments in the plaint: the plaintiff is a Nationalised Bank. The defendant is the proprietor of M/s. Antony Hardware, at No. 113 Eldams Road, Teynampet, Chennai 600 018. At the request of one Thiru S. Kandaswamy, proprietor of M/s. Ramesh Textiles, Eldams Road, Teynampet, Chennai 600 018, the plaintiff granted cash credit facility to him to an extent of Rs. 30,000/- on 23. 08. 1985. The defendant stood as a guarantor for repayment of the dues of S. Kandaswamy. The said S. Kandaswamy was declared as an insolvent by the High Court Madras in I. P. No. 23 of 1986. The defendant had executed a guarantee on 23. 08. 1985.