CENTRAL BANK OF INDIA Vs. ISHWAR SARAN GUPTA

JUDGEMENT

(1.) THE appellant/plaintiff Central Bank of India filed a suit for recovery of Rs.77,099.40 P. against respondent No.1 Ishwar Saran Gupta - - the borrower -and Chamapal Rathore and Niwaran Swaroop Gupta - - both guarantors of Ishwar Saran Gupta. Niwaran Swaroop Gupta died during the pendency of the suit and his legal representatives were brought on record. They are respondents 3 to 11. The suit was filed on the allegation that the respondent No.1 was sanctioned cash -credit limit with quarterly rest,i.e. the interest charged on the principal debt is added to the principal sum after three months and that becomes the principal sum for the purpose of interest and repayment on expiry of the third month and that continues. The plaintiff -Bank alleged in para 8 of the plaint that the respondent No.1/defendant has admitted his liability of the payment of the loan amount to the Bank on 28.4.1980, 5.8.1981, 5.5.1981 and 4.1.1983 for Rs.23,605.91, Rs.30,226.43, Rs.33,672.96 and Rs.44,992.30 and further in para 15 that the amount due against the respondent No.1, after calculation of interest, is Rs.77,099.40 at the time of the institution of the suit. The above mentioned allegations made by the plaintiff are denied by the defendants/respondents in para 8 of the written statement wherein it has been alleged that the allegations made in para 8 of the plaint are denied and that the Bank had made illegal calculations and the amount which has been said to be due against the defendants is neither lawful nor is liable to be recovered from them. Further, in para 10 of the written statement it has been stated that the allegations made in para 10 of the plaint are denied and that the calculation of the amount is based on illegal calculation of interest and, therefore, the amount said to be recoverable from the defendants is not recoverable from them.