NALINI ABRAHAM Vs. NALINI ABRAHAM

JUDGEMENT

(1.) SINCE both the appeals arise out of the same judgment, it is proposed to dispose of the same by common judgment. First Appeal No. 21 of 1990 is filed by appellant Mrs. Nalini Abraham who is defendant No. 2 and partner of defendant No. 1. First Appeal No. 22 of 1990 has been filed by defendant No. 4 who is guarantor for cash credit facility.

(2.) THE respondent Bank (hereinafter referred as plaintiff) had filed a suit for recovery of money against the appellants (hereinafter referred as defendants Nos. 2 and 4, respectively) and others. The case of the plaintiff is that defendant No. 1 is a partnership firm duly registered of which defendants No. 2 and 3 are partners and defendant No. 4 is the Manager of the said firm. The partners of the said firm, namely defendants Nos. 2 and 3, were granted cash credit facility for the purpose of business upto a sum of Rs. 40,000/ -. Defendants Nos. 2 and 3 executed demand promissory note and also hypothecated telephone parts and raw materials as security for the said loan. Defendant No. 4 was guarantor in respect of the said loan. The said cash credit account was to carry interest at the rate of 5% per annum over the Reserve Bank of India rates with minimum of 14% per annum. Subsequently, key loan of Rs. 70,600/- was sanctioned by the plaintiff to defendant No. 1 who kept 21 cartoons of carbon granules as security for the said loan. The said loan was to carry minimum interest at the rate of 12. 5% over and above 3. 5% over the Reserve Bank official rate. Defendant No. 1 executed promissory note in favour of the plaintiff for the said amount.

(3.) THE amounts due in the said accounts were not cleared. In the meantime, letters of acknowledgement of liability were sent and the last letter of acknowledgement is that of defendant No. 1 who wrote a letter on 14-4-1982 to the plaintiff acknowledging the liability of payment of the said loan. On account of non-payment of dues under the said loan account, suit was filed by the plaintiff claiming a sum of Rs. 67,129-24 towards the cash credit facility and Rs. 56,574-08 towards the key loan account with 16. 5% interest on the said amounts with effect from 20th January 1983.