ABHYUDAYA COOPERATIVE BANK LTD Vs. DANPAL BALIRAJ SHAMA

JUDGEMENT

(1.) This is an application by a Co-operative Bank against the order of the learned Magistrate, handing over taxi No. MRK 3671 to the custody of the Bank on the execution of a bond for Rs. 20,000/- The Magistrate has not given the Bank liberty to sell the taxi for the recovery of the amount advanced by it. Hence the application.

(2.) Certain facts need be noted before the real nature of the dispute is understood. The petitioner is a co operative Bank, which has advanced a loan of Rs 22,000/- to respondent No. 1 for buying a car named Padmini for using it as a taxi and the balance price was to be paid by respondent No, 1. The loan amount was to be repaid in 36 instalments of Rs, 6l5/-plus interest. This transaction took place on 26th July 1976. The first instalment was payable on 10th of September 1976 and thereafter on or before the 10th of each succeeding months the remaining instalments were to be paid regularly, the amount advanced carried interest at 15%

(3.) Respondent No. 1 signed a 11 the relevant loan documents as the debtor and respondents Nos 2 and 3 signed those documents as sureties of respondent No. 1 The documents executed by respondent No.1 were pro-note dated 26-7-1976, a laon agreement and an undertaking by respondents Nos. 2 and 3 as attesting witnesses. There is also a hypothecation deed signed by respondent No. 1 The relevant terms and conditions to be noted are that in default of payment of any one instalment, the entire loan amount becomes due and recoverable by the Bank and they had a right to call upon respondent No. 1 to pay the entire balance at once.