SITA BAI Vs. SOUTH INDIA BANK LTD

JUDGEMENT

(1.) Defendant No. 10 in O.S. No. 269 of 1986, on the file of 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 defendants 1 to 10 for recovery of a sum of Rs. 5,34,877-74 Ps with future interest at 17.5% per annum. The plaintiff is a bank. It was alleged that the plaintiff created the facility of overdraft limit of Rs. 20,000/-, bills purchase facility of Rs. 1,50,000/-, CCKL limit of Rs. 1,50,000/- on 20.03.1981 in favour of defendant No. 1, a pharmaceutical company, and it also advanced a sum of Rs. 50,000/- and Rs. 80,000/- under promissory notes dated 07.01.1981 and 11.01.1980 respectively.

(3.) Defendants 2 to 4 are the partners of the firm and defendants 6 to 9 stood as guarantors for repayment of various loan amounts. So far as defendant No. 10 was concerned, it was pleaded that she has executed a mortgage note on 12.04.1978 covering all the transactions referred to above and for the purpose of creation of mortgage, she has deposited the title deeds in respect of the property i.e., mulgi bearing No. 21 -2-2, Pattargatty, Hyderabad. The plaintiff pleaded that in spite of repeated notices, defendants did not pay the amounts.