C N SUNDARAM Vs. CHENAI FINANCE CO LTD

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dated 14-11-1994 passed by the IV Additional Judge, City Civil Court, Hyderabad, in O.S.No.322 of 1989.

(2.) The appellant is Defendant No.7 and Respondent No.1 is the plaintiff. The appeal, as against Respondent Nos.2 to 7, who are Defendant Nos.1 to 6, was dismissed for default, vide order of this Court dated 31-12-2001. They were also set ex parte in the suit before the Court below. For the sake of convenience, the parties shall be referred to as arrayed in the suit.

(3.) The plaintiff, which is a finance company, claims to have advanced a loan amounting to Rs. 1,50,000/- to Defendant No.1, which is a partnership firm, vide cheque dated 3-11-1986, for purchase of a bore rig, and that Defendant Nos.2 to 5, who are partners in Defendant No.1 along with Defendant Nos.6 and 7 stood as guarantors to the loan amount, and executed loan documents agreeing to repay the loan amount with interest at the rate of 25% per annum, and that Defendant No.4 also addressed a letter dated 23-5-1987 to that effect. As Defendant No.1 having taken the loan amount, and as in spite of receiving the legal notices, Defendant No.1 and Defendant Nos.2 to 5 being its partners, and Defendant Nos.6 and 7, having stood as guarantors, failed to repay the loan amount, the plaintiff filed the suit for recovery of a sum of Rs.1,02,175-50 ps. from the defendants with interest thereon at the rate of 25% per annum from the date of suit till realization.