CENTRAL BANK OF INDIA Vs. BALKRISHNA GOVIND BHOSLE

JUDGEMENT

(1.) The Plaintiff has filed this suit for recovery of various amounts due and payable by the Defendants at the foot of the cash credit account as well as the term loan account.

(2.) According to the case of the Plaintiff, the 1st Defendant is carrying on business as the sole properietor of M/s.Vishal Packaging Works. On his request in April 1988 the Plaintif-Bank granted term loan facility in the sum of Rs.1 lakh and cash credit facility in the sum of Rs.50,000/- to the 1st Defendant. The 1st Defendant executed various documents for securing the loan. The 2nd Defendant guaranteed repayment of the amount due and payable under both the facilities by executing letters of guarantee. As the Defendants committed defaults, correspondence was made by the Plaintiff with the Defendants. On 30th April 1991 the 1st Defendant acknowledged the amount payable by executing a letter of acknowledgement. On 14th September 1991 the 1st Defendant executed a fresh set of security document in favour of the Plaintiff. Two more such letters were executed by him on 12th August 1994. The present suit is filed for recovery after giving a legal notice.

(3.) The 1st Defendant filed written statement raising various contentions. The 1st Defendant contended that the term loan facility was granted by the Plaintiff in favour of M/s.Pratap Machine Tools Co. The other contention raised by the 1st Defendant was that he could not repay the amount payable under the cash credit facility as automatic printing machine on which loan was provided was not functioning properly. Another contention raised by the 1st Defendant is that he had paid a sum of Rs.34,000/- in the year 1995 to the Plaintiff. The 1st Defendant also disputed the rate of interest claimed by the Plaintiff.