MAHADEV RAMA BHONSLE Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) RESPONDENT No. 1 (original plaintiff) had filed a suit for recovery of money against the appellants (original defendant No. 2, now represented by LRs. and defendant No. 3) and respondent No. 2 (original defendant No. 1 ). Respondent No. 2 had taken loan of Rs. 58,300/- from the respondent No. 1 and the appellants had stood guarantors for the same. The loan was not paid and respondent No. 1 executed a fresh agreement of hypothecation dated 11-9-84, thereby hypothecating Matador Pick-up, for the purchase of which the loan was taken. Likewise, the appellants executed a fresh Deeds of Guarantee dated 25-3-1985 and 11-9-84 respectively.

(2.) THE suit was not contested by respondent No. 2 who admitted the respondent No. 1s claim, but the appellants took up the plea that fresh agreement of hypothecation and fresh guarantee taken by respondent No. 1 was without any consideration and did not have effect of extending limitation period. After recording the evidence, the Civil Judge, Sr. Division, Panaji decreed the suit for a sum of Rs. 64,617. 33 together with interest thereon at the rate of 12% per annum, from 1-10-1986 till the date of the decree and also from the date of the decree till the date of complete realisation of the decreetal amount. All the defendants were made jointly and severally liable to pay the decreetal amount.

(3.) THE said judgment dated 29-9-1987 is the subject matter of challenge in this First Appeal, filed by the guarantors, namely defendants No. 2 and 3 who are the appellants in this appeal.