ARUN TRADING COMPANY Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) ORIGINAL defendants by this appeal have challenged judgment and decree dated 24-7-1985 passed in Special Civil Suit No. 211 of 1977, by the Civil Judge, Senior Division, Nagpur, on the ground that the suit claim was beyond the period of limitation.

(2.) LATE Subhash Samarth was the proprietor of defendant no. 1 company which was subsequently renamed as defendant no. 2 M/s. Anurag Trading Company. Late Mr. Samarth in 1973 availed cash credit facility from the plaintiff-Bank by executing requisite document such as pro-Note etc. Respondent no. 5 - Shri V. D. Samrath stood as a guarantor by deposit of title-deed with the Bank. Late Subhash Samarth died on 11-6-1976 in an accident.

(3.) THE plaintiff Bank on 2-7-1977 filed a Civil Suit for recovery of rs. 202,458. 12 P. as a balance outstanding against the defendant no. 1 as on 30-6-1977. The plaintiff Bank for the purposes of limitation in para 14 of the plaint pleaded the cause of action which reads as under : -