MUTHIAN Vs. SYNDICATE BANK POLLACHI

JUDGEMENT

(1.) This is an appeal by the defendants in O.S. No. 174 of 1978 on the file of the Court of the Subordinate Judge, Udumalpet, against the judgement and decree of the trial Court dated 24-9-1979, decreeing the suit for recovery of a sum of Rs. 12,533.55 p. said to be due on a promissory note dated 16-2-1970 executed by the defendants in favour of the respondent Bank, for Rs. 22,900/- repayable with interest thereon at 18 per cent per annum.

(2.) The appellants have restricted their dispute in the appeal to a sum of Rs. 7,000/admitting their liability to pay the balance of Rs. 5,533.55 p.

(3.) The case of the respondent Bank before the lower Court is as follows :- For purchase of a tractor, trailor and their accessories, the first defendant Muthian got a loan of Rs. 22,900/- from the respondent Bank and he and the second respondent as his surety, executed a promissory note under Exhibit Al for the said amount in favour of the respondent Bank on 16-2-1970, agreeing to repay the said loan with interest at 9 per cent per annum. Thus, the liability of the second defendant is joint, several and co-extensive with that of the first defendant. As per the instructions of the Reserve Bank of India, the interest has been raised and along with the default rate of interest, the appellants are bound to pay interest at 18 per cent per annum. The appellants had acknowledged the outstanding in writing on 2-9-1972 and 12-8-1975, which acknowledgments save the suit claim from being barred by limitation under S.18 of the Limitation Act. The appellants having evaded payment of the loan in spite of demands, the suit was laid for the abovesaid relief of recovery of the loan amount with interest. The respondent Bank has been keeping true, proper, regular, correct and day-to-day accounts in the usual course of business, and as per the ledger accounts relating to the first defendant, there is a balance of Rs. 12,533.55 p. due as on 10-8-1978.