BANK OF BARODA Vs. J K CHEMICALS

JUDGEMENT

(1.) Being aggrieved by the judgment and decree dated 26th August 1996 passed by 6th Joint Civil Judge, Senior Division, Nagpur dismissing the suit of appellant-Bank as against respondents no. 4 and 5, appellant-Bank has filed the present appeal. Appeal is filed also against the refusal of the trial Court to award agreed rate of interest on the outstanding amount. Parties shall hereinafter be referred to as per their original status in the suit.

(2.) Plaintiff-Bank filed suit against the defendants for recovery of Rs. 7,85,655.50. It was averred that various loans as described in paragraphs 3 and 4 of the plaint were granted and disbursed to defendants no. 1 to 3 and defendants no. 4 and 5 stood guarantee for borrowers (defendants 1 to 3). Since the defendants failed to pay the loan amount, a call notice was issued to them to pay off the outstandings. Since inspite of notice defendants did not settle the dues, plaintiff-Bank filed the suit.

(3.) Defendants no. 1 to 3 by their Written Statement, denied the claim of plaintiff-Bank. They alleged that it was the plaintiff-Bank which was responsible for closure of their unit. Defendants no. 4 and 5 denied their liability. They denied having stood guarantor for defendants no. 1 to 3.