FEDERAL BANK LIMITED Vs. H AND P TEXTILES

JUDGEMENT

(1.) THIS is a suit for recovery of money. The original defendant No. 1 has died. Defendant No. 1 had approached the plaintiff-bank for grant of credit facility against export bills. The person who approached the bank on behalf of defendant No. 1 was original defendant No. 2. The plaintiff-bank agreed to purchase the bills and pay money to the customers of defendant and defendant was to make payment to the bank. The bank, thus purchased bills of the value of Rs. 7,20,440,00, out of which they realised Rs. 6,35,478,11 Ps. and balance of Rs. 84,936,48 Ps. was outstanding for which the suit is filed. The bank charged interest at the rate of 21% per annum.

(2.) THE defendant remained absent at the time of trial, although written statement has been filed by defendant No. 1 and 1-A on 22-6-82 contesting the claim. According to the defendants amount of Rs. 84,936,48 Ps. is not due. The interest is also charged at higher rate. However, execution of document is not denied.

(3.) ON the basis of written statement, issues were famed. Issues and my findings thereon recorded against the defendants and the reasons in the preceding paragraphs.