ADATHIL PULIKANDY KADER Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THIS is an appeal preferred by original defendant No.2, the guarantor, against the judgment and order given by Civil Judge, Senior Division, Sangli dated March 11, 1986 whereby the trial Court decreed the Suit filed by the respondent No.1. Only few facts are necessary for the disposal of the present appeal.

(2.) ON 29th January 1980 cash credit facility was granted by the respondent No.1 Bank to the respondent No.2. The limit was Rs.40,000/-. ONe Adathil P.Kader had stood guarantor in respect of the said facility. As on 30th October 1980 there was a debit balance of Rs.89,000/-. The debit balance was then transferred to a new account in favour of the respondent No.2 where the limit was increased to Rs.1,50,000/-. ON the same day, the appellant signed the deed of gaurantee. The suit was thereafter filed by the respondent No.1 Bank for recovering its dues in view of the fact that according to the Bank, there were irregularities committed by the principal debtor viz. the respondent No.2 in the suit. The appellant also made the guarantor as party. Several pleas were raised by the defendants who had filed their written statement. ON the basis thereof, several issues were raised. Ultimately, the Trial Court came to the conclusion that both the original defendants were liable, the respondent No.2 as the principal debtor and the appellant as the guarantor. Being aggrieved, the present appeal is preferred.

(3.) APPEAL is therefore dismissed with costs. APPEAL dismissed.