NAGUESH KAMAT & ANR. Vs. SYNDICATE BANK

JUDGEMENT

(1.) This is an appeal directed against the judgement and decree of the learned Civil Judge, Senior Division, Quepem dated 2nd Jan., 1989 in the Special Civil Suit No. 5 of 1978 whereby the learned Civil Judge has allowed and decreed the respondent's suit. By the aforesaid judgement the learned Judge has allowed and decreed the suit for recovery of the amount of Rs. 25,146.20 filed by the respondent against the appellants and directed the appellant No. 1 to pay the said amount with interest of Rs. 18.5% per annum from the date of filing the suit till the realisation of the amount. However, as far as the appellant No. 2 is concerned the learned Judge ruled that the liability of the said appellant should be limited to Rs. 17,000 only with interest at the rate of Rs. 12% per annum from 23.12.1977 till the realisation of the amount. In addition the counter-claim of the appellant No. 2 was dismissed.

(2.) It was the respondent's case that on 1st March, 1972 the appellant No. 1 approached them for an advance of Rs. 3,000.00 which was granted to him by way of an overdraft bearing No. 162 of 1972 and further on 9.2.1973 another loan was sanctioned to him to the tune of Rs. 10,000 by way of demand loan bearing No. 13/73. The appellant had agreed to pay to the respondent interest on the amount so advanced at the rate of 5.5% per annum above the Reserve Bank of India rate of interest with a minimum of 11.5% per annum with monthly rests. The rate of interest would vary from time to time with variation in Reserve Bank of India advance rates.

(3.) At that time the said appellant executed a on demand pro-note for Rs. 3,000.00 dated 1.3.1972 guaranteed by one Atchut Kamat as security for the repayment of the overdraft. Similarly on demand pro-note for Rs. 10,000.00 was also executed by the said appellant equally guaranteed by Atchut Kamat for the repayment of loan amount of Rs. 10,000.00. The said promotes were subsequently renewed by them on 26.2.1975 and 5.2.1976 respectively. The appellant No. 1 signed all the necessary documents in the favour of the respondent confirming the receipt of the loan and the advance as well as their liability to repay the same to the respondent on demand.