VISHAL AGENCIES Vs. OSMANABAD JANATA SAHAKARI BANK LTD

JUDGEMENT

(1.) D. G. Karnik, J. Heard Shri A. K. Kanade learned counsel for the petitioners and Shri S. S. Choudhary, learned counsel i/b Shri A. N. Irapatgire, advocate for the respondent No. 1. The learned counsel for the petitioners craves leave to delete the respondent No. 2. Leave granted. Rule, made returnable forthwith by consent of the parties.

(2.) THE respondent is a Co-operative Bank having amongst others, a branch at Latur. At the request of the petitioners, a cash credit facility with the drawing limit of Rs. Fifteen lacs was granted by the respondent No. 1 to the petitioners on 3rd June, 1997 and the actual cash credit account was opened on 18th June, 1997. Enjoying the said cash credit facility, the petitioners transacted business and borrowed money from the respondent bank. It is not disputed that till October / November, 1997. the petitioners were regularly transacting business with the respondent No. 1 Bank. In November, 1997 the petitioners stopped operations in the cash credit account.

(3.) AS the operations in the account were stopped and a sum of Rs. 14. 75 lacs was due, the respondent Bank issued demand notices and ultimately filed a dispute in the Co-operative Court at Nanded for recovery of Rs. 17,50,693,04 inclusive of interest upto to the date of the dispute. The original respondent no. 2 in this petition, who was the guarantor, was also joined as party to the dispute.