INDIAN BANK Vs. SEAGLE ENGINEERS

JUDGEMENT

(1.) DISSATISFIED with the part of the decree, Bank has preferred this appeal.

(2.) THE facts in brief and the facts undisputed borne out from the record are as below : the partnership firm consisting of the two partners viz. Defendant No. 2 Mr. C. Mohammad Macharuddin and S. D. Iyer who is now dead approached the Bank for the loan facilities which were sanctioned on 28. 10. 88. The partners were Ex-servicemen. The loan was sought for the construction of Ferro Cement Boats. Both the partners on receipt of the loan amount executed the pronote, the agreement of hypothecation and other relevant documents including the equitable mortgage by defendant No. 7.

(3.) THE partnership firm did construct the fishing boat referred to as barge worth Rs. 8. 10 lakhs. The valuation report to that effect was dated 12. 08. 93. The vessel was meant for sale but it could not be sold inspite of the strenuous efforts made by the partners. The vessel unfortunately sunk on 28. 10. 93.