INDIAN BANK MADRAS Vs. N MUNISANKAR

JUDGEMENT

(1.) This ia an appeal by Indian Bank against the Judgment and decree of the Additional Subordinate Judge, Tirupati in O.S. No. 264 of 1990.

(2.) The suit is filed for recovery of Rs. 13,41,295-20 Ps. being the principal and interest due on a pronote dated 22-11-1985 executed by the first defendant in favour of the Plaintiff-Bank for a sum of Rupees 3,00,000/- and for costs.

(3.) The averments in brief are that the 1st defendant for purpose of doing business in real estate obtained overdraft facility in the Current Account of a sum of Rupees 3,00,000/- and started availing the facility after executing a pronote on 22-11-1985. He agreed to pay interest at the rate of 7.5 per cent over the official rate of Reserve Bank of India with a minimum of 17.5% per annum with quarterly rests. The second defendant was the guarantor. On 31-3-1987 the first defendant renewed the demand promissory note for a sum of Rs. 7,13,402-40 Ps. The first defendant deposited the title deeds of the immovable property as security on 28-4-1988. The defendants have acknowledged the debt in a sum of Rs. 8,67,239.55 Ps. The Promissory note was also renewed. In spite of reaped demand, the defendant have not paid the amount. Hence the suit.