SAMADHAN Vs. GAJANAN MAHARAJ URBAN CO. OP.

JUDGEMENT

(1.) Rule. Rule made returnable forthwith. Heard finally by the consent of the parties.

(2.) This petition filed under Articles 226 and 227 of the Constitution of India, takes exception to the judgment and award passed by the learned Judge, Cooperative Court, Aurangabad, in Dispute No.168/2006 and the judgment of the learned Member, Maharashtra State, Cooperative Appellate Court, Mumbai, Bench Aurangabad, in Appeal No.59/2008.

(3.) The respondent No.1 filed Dispute No.168/2006 against the petitioner being borrower and respondent Nos. 2 and 3 being guarantors for recovery of loan amount of Rs.21,98,283.00. It is the case of the respondent No.1 that the petitioner is proprietor of Samadhan Traders and the firm was in the business of seeds, fertilizers and insecticides. On 28/2/2002 the petitioner applied for cash credit loan facility of Rs.15.00 Lakhs. Respondent Nos. 2 and 3 stood guarantors for the said facility. By resolution dtd. 2/3/2002 respondent No.1 Bank granted cash credit loan of Rs.15.00 Lakhs, which carried interest @ 18% per annum and if the said remains outstanding 2% penal interest will be applied on the arrears. On 30/3/2002 the petitioner executed two promissory notes of Rs.10.00 Lakhs and Rs.5.00 Lakhs in favour of the respondent No.1 Bank. The petitioner and respondent Nos. 2 and 3 executed necessary loan documents. The petitioner failed to repay the loan of the Bank. Hence, the Bank filed the said Dispute.