SHREE RAM INDUSTRIES Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) BOTH these appeals between the same parties arising out of the same transaction are being disposed of by this common judgment.

(2.) THE loan admittedly was advanced to Defendant No. 1 of which defendants No. 2 and 3 were the Partners in November 1982 by New bank of India which was subsequently merged and taken over by the punjab National Bank under Banking Companies (Acquisition and transfer of Undertakings) Act, 1970. The Original suit for recovery of rs. 14,64,175 was filed by New Bank of India in Alwar Court on 6. 10. 90. On merger and on acquisition Punjab National Bank was substituted as the plaintiff. Both the banks are hereinafter referred to as Bank.

(3.) IT was alleged by the Bank that the defendants were sanctioned loans under Cash Credit Hypothecation account and Pledge account. The defendants had agreed to pay interest at the rate of 17. 5% and 18% per annum with quarterly rests respectively. It was atteged by the bank that the defendants committed defaults in repayment and as such the Bank was required to file suit for the recovery of Rs. 14,64,175 along with the future interest. The said suit came to be transferred to the Tribunal under the provisions of Recovery of Debts Due to Banks and Financial Institutions Act, 1993.