R N LOTLIKAR Vs. DENA BANK

JUDGEMENT

(1.) The appellants were defendants Nos. 1 to 6 in Special Civil Suit No. 32 of 1982 filed by the Dena Bank in the Court of Civil Judge, Senior Division at Ponda.

(2.) Sometime in the year 1982, Dena Bank filed Special Civil Suit No. 32 of 1982 against M/s. R.N. Lotlikar, a partnership concern carrying on mining business, and five of its partners, for recovery of sum of Rs. 9,93,360.41/- with interest at the rate of 17.5% per annum accruable on Ist October, 1982. It was the case of the original plaintiff in the plaint that on 8th November, 1975 the defendant No. 1 was given cash credit accommodation to the extent of Rs. 1,00,000/-. It was the case of the plaintiff the plaint that on 14th April, 1976, the cash credit in facility was enhanced. It appears that on 1st November, 1977 and 20th February, 1978, the said cash credit facility was further enhanced. Ultimately, the cash credit facility granted by the Bank in favour of defendant No. 1 was enhanced to Rs. 3,50,000/-. On 14th February, 1977, the defendant No. 1 was given a Medium Term loan in the amount of Rs. 1,12,000/- for purpose of purchase of a truck. The defendant No. 1 executed large number of documents in favour of the plaintiff. The defendant No. 1 also hypothecated a jeep in favour of the plaintiff.

(3.) On 3rd November, 1977, the plaintiff Bank had granted to defendant No. 1 another cash credit facility in the nature of Medium Term loan in the amount of Rs. 1,75,000/-.