PADMAKAR Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This First appeal, filed by the borrower/guarantor challenging the decree passed against him by the learned Civil Judge, senior Division, Nagpur was taken up for disposal at the stage of admission in view of the orders passed on 17th August, 2005.

(2.) The appeal arises out of the following facts: on 25. 09.1984 the plaintiff Bank sanctioned to defendant No. 1/present respondent no. 2, a proprietory concern, owned by the appellant's brother, a demand cash credit limit of Rs. 1,00,000/- and cash credit limit of rs. 1,40,000/ -. The appellant, who was arrayed as defendant No. 2 in the suit, stood as a guarantor and executed necessary agreement of guarantee. A sum of Rs. 4,02,115.11 ps. was found to be due in this loan account. This amount was not paid by the borrower inspite of the demand. Hence, the plaintiff bank filed suit claiming recovery of the amount jointly and severally from both the principal debtor and the guarantor / appellant.

(3.) Apart from filing written statement, the borrower defendant No. 1 had also made a counter claim. The present appellant also filed written statement contending that the plaintiff Bank should recover the loan from the property of defendant no. 1. It was also contended that the guarantee was only for the period of three years and therefore, the appellant was not liable.