G CHANDRA SEKHAR RAO Vs. STATEBANK OF HYDERABAD

JUDGEMENT

(1.) Defendant No. 6 in O.S. No. 1617 of 1985 on the file of the learned V Additional Judge, City Civil Court, Hyderabad is the appellant. For the sake of convenience, the parties are referred to as arrayed in the suit.

(2.) The plaintiff filed the suit against the defendants for recovery of a sum of Rs. 4,73.185/- together with interest. It was pleaded that the 1st defendant, a firm, in which defendants 2 to 4 were partners obtained loan/cash credit facility and have executed a document, dated 13.11.1979. According to the plaintiff, in the year 1983, a proposal was mooted for reconstitution of the 1st defendant and on that, they made it clear that the liability of the erstwhile partners i.e., defendants 2 to 4 does not get altered. It was also pleaded that without any intimation to them, the 1st respondent had permitted not only the erstwhile partners, but also those who joined later, including the 6th defendant, to retire from partnership. With these and other allegations, the plaintiff prayed for a decree for recovery of amount.

(3.) The suit was opposed by defendant No. 2 by filing a written statement and respondents defendants 3 and 4 adopted the same. They did not dispute the factum of borrowing of the amount. However, their plea was that they retired from the firm and therefore, they cannot be saddled with any liability. The 7th respondent herein also filed an independent written statement. He too denied the liability. Defendants 1, 5 and 6 remained ex parte. The 7th defendant died during the pendency of the suit.