BANK OF MAHARASHTRA Vs. ASHOK GURUDAYAL ARORA

JUDGEMENT

(1.) THE Plaintiffs have filed this suit by invoking Order XXXVII Rule 2 of the Code of Civil Procedure, 1908 for a money decree in the sum of Rs.52,667.92 together with interest thereon as prayed.

(2.) ACCORDING to the case of the Plaintiff, the Defendant is carrying on business in the name and style of M/s.A.G.Enterprises as a sole proprietor thereof. On the application made by the Defendant, the Plaintiffs granted cash credit facility to the Defendant to the extent of Rs.25,000.00. The Defendant executed a demand promissory note dated 24th January, 1989 in favour of the Plaintiffs by way of security for repayment of loan. The Defendant also executed a letter of continuing security dated 24th January, 1989 in favour of the Plaintiff. By a letter of acknowledgment dated 31st December, 1991 the Defendant acknowledged that a sum of Rs.31,899.41.00 was due and payable by him at the foot of the said cash credit account. As the Defendant did not pay the amount, by legal notice dated 19th November, 1994, the Defendant was called upon to pay the outstanding amount with interest.

(3.) THE Plaintiffs have examined Shri Narayan Anandrao Bhosale as their witness. The said witness has proved various documents. Exhibit P-1 is the letter of proprietorship dated 24th January, 1989 executed by the Defendant informing the Plaintiff that he is the sole proprietor of M/s.A.G.Enterprises. Exhibit P-3 is the demand promissory note dated 24th January, 1989 and Exhibit P4 is the letter of continuing security of the same date. Exhibit A-6 is the letter of acknowledgment acknowledging the execution of the promissory note and the liability to pay a sum of Rs.31,899.41 as on 31st December, 1991 at the foot of the cash credit account. The Plaintiffs have also produced a certified extract of the cash credit account of the Defendant. The said extract has been issued in accordance with law provisions of the Bankers' Book Evidence Act, 1891. There is no contest by the Defendant.