CANARA BANK Vs. ANTHONY FERNANDES

JUDGEMENT

(1.) THIS appeal by the original plaintiff is directed against the judgment dated July 30, 1987, passed by the learned Civil Judge, Senior Division, Panaji, whereby he partly decreed the suit inasmuch as he allowed it only against the first respondent herein.

(2.) THE appellant-bank has filed a suit for recovery of money against respondents Nos. 1 and 2 on the ground that a loan of Rs. 42,000 has been granted by the first respondent on April 9, 1976, the second respondent having stood as a surety. The said loan was meant for the purchase of a matador Mini Bus and was granted on the execution of a promissory note carrying interest at the rate of 4 1/2% per annum above the Reserve Bank of India rate with a minimum of 13 1/2%. The said loan was to be paid along with interest by monthly instalments of Rs. 1,000 commencing on may 9, 1976. In addition to that demand promissory note, the first respondent executed a deed of hypothecation in respect of the Mini Bus No. GDL-4535. After making some payments, the first respondent stopped making payment of the instalments and in spite of reminders, he did not pay the dues to the plaintiff-bank. Therefore, bank's notice was given and, thereafter, the suit was filed.

(3.) ONLY respondent No. 1 resisted the suit by stating that he could not regularly make payment of the instalments due to frequent breakdowns of the vehicle.