BANQUE NATIONALE DE PARIS Vs. MONALI FOOTWEAR INDUSTRIES

JUDGEMENT

(1.) THIS suit is for recovery of money advanced under the cash credit facility granted to the defendants. The defendants had applied for cash credit facility with the plaintiff-bank. On the said facility being granted, the defendants executed necessary documents like demand promissory note, hypothecation deed, letter of lien etc. The said cash credit facility was granted to the defendants to the tune of Rs. 1,00,000/ -. The defendants have utilised the said facility and when the balance payable by the defendants came to Rs. 2,07,295. 90 ps. the defendants executed balance confirmation letter on 17-6-1977 and on 12-7-1997 executed fresh documents in view of the huge outstanding amount. Inspite of repeated reminders the defendants did not pay the said amount. Thereafter notice was issued to the defendants by the plaintiffs through their Advocate. Still there was no response from the defendants and hence the plaintiffs have filed the present suit.

(2.) THE defendants appeared in the suit and filed their written statement. Though initially the defendants attempted to deny execution of the documents, later on the defendants have admitted the fact of execution of the documents and have contended that the suit claim is barred by limitation.

(3.) ON the pleadings of the parties, issues were framed and those issues with my findings thereon are as under and the reasons for the same are stated in the paragraphs that follows :