BANK OF INDIA Vs. PREMBAI AND ANOTHER

JUDGEMENT

(1.) This is plaintiff's appeal against the Judgment and decree dated 6.7.1984 of the Additional District Judge, Sehore passed in Civil Appeal No. 41-B/82 (arising out of the judgment and decree dated 24.10.1981 of Civil Judge Class I, sehore Passed in Civil Suit No. 8-B/79) whereby plaintiff's suit against the defendant No. 2 Guarantor has been dismissed and Trial Court's decree confirmed.

(2.) The brief history of the case is that the defendant No. 1 obtained loan from the plaintiff on three counts Rs. 4,925/-. Rs. 1,300/- and Rs. 5,000/- by executing three different promotes. Defendant No. 2 stood guarantor to defendant No. 1 to the extent of Rs. 10,000/- vide Deed of Guarantee, Ex. P. 16. The amount was paid to defendant No. 1 in the year 1974. Defendant No. 1 failed to pay the loan, however, acknowledged the debt on 17.3.1977, vide Ex. P-17 and P-18. She again failed to repay the amount, hence the suit was filed on 17.9.1979.

(3.) Plaintiff's suit was decreed against the defendant No. 1. However, the suit against the defendant No. 2 was dismissed as being barred by time. The Trial Court did not award the interest pendents lite. The first appellate Court awarded interest @ 9% P.A. and confirmed the decree so far as dismissal of suit against defendant No. 2 is concerned. Hence this second appeal.