BHERULAL AND OTHERS Vs. BANK OF INDIA

JUDGEMENT

(1.) This First Appeal is by the defendants against the judgment and decree rendered by the learned Vth Additional District Judge, Dhar dated 30.3.92 passed inC.S. No. 2-B/91. By impugned judgment and decree the learned trial Judge has been pleased to decree the suit filed by respondent (plaintiff) by passing a money decree for Rs. 1,12,188.32 Ps. Facts in brief for the disposal of appeal need mention infra.

(2.) Respondent is a plaintiff. It is a nationalised Bank. The appellant No. 1 is the defendant No. 1. The appellant No. 1 obtained a loan what is known in banking system a term-loan from the respondent (Bank) for Rs. 66,400.00. This loan was for purchase of jeep. In terms of loan agreement the appellant No. 1 was to pay Rs. 1,850.00 in equal monthly instalment to the Bank in its repayment. The appellant Nos. 2 to 7 who are defendant Nos. 2 to 7 in Trial Court stood as guarantor to secure the loan transaction. Necessary documents such as guarantee documents, mortgaged documents, were duly executed by the appellants in their capacity as guarantors. Since the defendants obtained a loan amount availed of for their use of which the loan was taken but did not repay it by paying any monthly instalments. This led to giving a legal notice by the Bank (plaintiff) on 9.2.88 calling upon the defendants to pay a sum of Rs. 81,306.84 Ps. together with interest accused thereon, which was calculated from 27.12.85 to 4.5.88 at Rs. 30,395.40 Ps. In all thus, a claim was made on the defendants for Rs. 1,21,188.00. Since defendants did not pay the amount as claimed, the plaintiff filed a suit out of which this appeal arises claiming a decree for Rs. 1,12,188.00.

(3.) The defendants denied their liabilities. According to them no loan was taken nor any document signed. Alternatively, it was alleged that the jeep for which the loan was taken met with an accident. It was alleged that the defendants have filed a claim petition in Gujarat which is pending final adjudication. They, therefore, prayed that till the claim petition is finally decided, this suit be stayed. It was also alleged that excessive interest is charged by the plaintiff having no basis. On these pleadings the suit was resisted.