SARDAR BHAJAN SINGH Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) THE appellants, who stood as guarantors, have filed the present appeal challenging the judgment and decree passed by the learned Single Judge in First Appeal No. 80 of 1982.

(2.) A money suit was filed by the Central Bank of India (respondent No. 1) for recovery of the loan amount of Rs. 18,000/- advanced on 1. 11. 1973. The loan was taken by Kaushal Kumar Sharma and the appellants Sardar Bhajan Singh and Govind Prasad Sharma stood guarantors and had executed deed of guarantee in favour of the Bank. The principal borrower failed to repay the loan and hence the suit was filed. The guarantors took the plea in their written statement that they did not furnish any guarantee for the said amount of loan and their signatures were obtained on some blank papers at their residence by the principal borrower. The recovery should be made from the principal borrower by taking possession of the car. Since the Bank Manager did not listen to the request of the guarantors to take possession of the car, no decree can be passed against them.

(3.) THE Trial Court passed a decree against the principal borrower and came to the conclusion that the documents were not executed by the guarantors, hence, absolved them from the liability and as against them, the suit was dismissed, against which the Bank preferred First Appeal (No. 80 of 1982) before this Court, which has been allowed by the Single Bench of this Court by the impugned judgment, and decree.