GUMMULURU SANSYASINAIDU Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE defendants in O.S.No.40 of 1999 on the file of the court of Senior Civil Judge, Narsipatnam are the appellants herein. THE suit was filed for a preliminary decree for recovery of Rs.1,78,484/- being the amount due under the loan transaction.

(2.) ACCORDING to the case of the plaintiff, the defendant Nos.1 and 2 availed the loan of Rs.35,000/- for poultry business and executed a registered mortgage bond on 30-03-1983 and the amount is payable in 60 instalments commencing from 7th month from the date of execution of the mortgage deed. The 3rd defendant executed a deed of guarantee. As the defendants failed to pay the amount, the plaintiff filed a suit O.S.No.8 of 1985 and a preliminary decree was passed on 25-09-1987 giving three (3) months time for redemption. Thereafter, the plaintiff filed I.A.No,45 of 1994 for passing of the final decree and to condone the delay. The said petition was dismissed on 17-10-1995 holding that the petition is not maintainable. Since there is no final decree, the relationship between the mortgagor and mortgagee subsits and therefore the plaintiff is entitled to institute the suit. The defendants are failed to pay the money and hence the suit was filed for recovery of the said amount.

(3.) ON behalf of the plaintiff, PW.1 was examined and marked EXs.A-1 to A-3. ON behalf of the defendants, DW.1 was examined and marked Exs.B-1 to B-5.