STATE BANK OF INDIA Vs. KULDEEP KAUR ANAND

JUDGEMENT

(1.) THE plaintiff-Bank, whose suit against the three defendants-respondents, for a sum of Rs. 3,90,743.61 with interest, was dismissed by the trial court, has preferred this first appeal.

(2.) THE plaint allegations may be summerised as follows:- THE 1st defendant is carrying on business in motor parts under the name and style of "Popular Auto Parts". THE said business is managed by the 1st defendant's husband Pritam Singh Anand, to whom the 1st defendant has given necessary power of attorney. At the request of the defendants, the plaintiff has granted cash credit facility to the extent of Rs. 1,25,000/- to the 1st defendant with effect from 21.1.1975. Defendants 2 and 3 are the guarantors for the due repayment of the amount availed of by the 1s t defendant under the above mentioned loan facility. THE plaintiff has filed along with the plaint, the promissory note dated 21.1.1975 executed by the 1st defendant through her power agent, the said Pritam Singh Anand in favour of defendants 2 and 3 for Rs. 1,25,000/- and duly endorsed by them in favour of the plaintiff. THE plaintiff has also filed along with the plaint the agreement dated 21.1.1975 for cash credit facility on security of pledge of goods, executed by the 1st defendant in favour of the plaintiff. THE plaintiff has also filed along with the plaint, the agreement dated 21.1.1975 executed by the defendants 2 and 3 in favour of the plaintiff guaranteeing repayment of the amount due under the said loan account. THE 1st defendant under a general letter of undertaking dated 20.12.1976 has also acknowledge her liability under the loan account and has affirmed all the action taken by her power agent, by virtue of the power of attorney dated 15.11.1974 given by her in his favour. THE defendant s have been most irregular in repayment of the amount availed of under the loan account and despite repeated demands including an advocate" notice dt. 23.9.1980, a sum of Rs. 3,90,743.61 remains due by the defendants to the plaintiff as on 16.1.1981. as per the copy of the account filed along with the plaint. THE defendants are liable to pay the said amount with interest thereon at 18.35% per annum from 17.1.1981 till payment, as that is the rate of bank interest applicable to the loan. In the reply dat ed 2.10.1980, the 1st defendant has only put forward untenable statements with the object of evading payment. THE 1st defendant has also acknowledge the liability by the acknowledgments dated 31.12.1977 and 20.1.1978. Defendants 2 and 3 have also acknowledged the liability by acknowledgments dated 20.1.1978. THE plaintiff has filed the suit reserving its right to proceed against the pledged goods as they have not commanded any ready market.

(3.) THE written statement of the defendant 2 and 3 may be summarised as follows:- THEse defendants deny having guaranteed the alleged loan. THE plaintiff ought to sell the pledged movables and realise the amount due, if any. Th plaintiff has no right to sue on the Guarantee without exhausting the other remedies. THEse defendants have not acknowledged any debt as claimed.