RAM NAGAPPA SHETTY Vs. SYNDICATE BANK

JUDGEMENT

(1.) This appeal is directed against an order of Pendse, J., allowing a Chamber Summons for amendment of a plaint subject to the contention of limitation to be raised by defendants. The appellant is one of the 5 defendants to the suit.

(2.) The plaintiffs ( the 1st respondents to the appeal) are a nationalised bank. Defendant 1 is a public limited company of which defendants 2, 3 and 4 were, at the relevant time, directors. On 21st August, 1973 defendant 1 asked the plaintiffs for a packing credit loan for the export of diamonds. On the 24th August, 1973 the plaintiffs sanctioned the loan, for Rs. 7,25,000/-. In connection therewith defendant 1 executed certain documents. On 28th September, 1973 defendant 4, who is the appellant, resigned as a director of defendant 1. His resignation was accepted on 27th October, 1973 and this was communicated to the Registrar of Companies. On 22nd November, 1973 certain further documents were executed. According to the plaintiffs these included an individual deed of guarantee in the sum of Rs. 2,30,000/- by defendant 4. On 19th August, 1976 the plaintiffs issued a notice of demand to each of the defendants. The notice recorded, inter alia, that by three separate deeds of guarantee all dated 22nd November, 1973, defendants 2, 3 and 4 had jointly and severally guaranteed repayment of the loan advanced to defendant 1 to the extent of Rs. 2,30,000/- together with interest thereon. The notice called upon defendants 2, 3 and 4 to make payment of the amounts so guaranteed.

(3.) On 21st August, 1976 the plaintiffs filed this suit. The plaint recited that defendants 2, 3 and 4 were liable under their guarantee dated 22nd November, 1973, copies whereof were annexed. On 21st February, 1977 defendant 4 filed a written-statement contending inter alia, that he had not signed any deed of guarantee dated 22nd November, 1973 and that the document relied upon by the plaintiffs was fabricated.