STATE BANK OF INDORE Vs. NISAR MOHAMMAD KHAN

JUDGEMENT

(1.) THE applicant/plaintiff has filed this appeal against the judgment and decree dated 29. 1. 1990 passed by IVth Additional Judge to the Court of District Judge. Chhatarpur in Civil Suit No. 1-B/88 wherein the applicant's prayer for allowing the interest at the rate of 15% per annum was rejected.

(2.) THE admitted facts of the case are that the plaintiff/bank, State Bank of Indore is a nationalised Bank having its branch at Galla Mandi, Chhatarpur. It is also a common ground that respondent No. I/defendant Nisar Mohammad Khan is the owner of the shop of Steel Furniture and the plaintiff/bank provided to defendant No. 1 cash credit facility upto Rs. 50,000/- and that on 27. 11. 84 defendant No. 1 executed the demand promissory note in favour of the plaintiff/bank. It is also the common ground that respondent No. 2/defendant No. 2 stood as a guarantor for the payment of amount on behalf of respondent No. 1/defendant No. 1. It is also an admitted fact that the defendants agreed to pay the interest with the rate of 15% per annum with quarterly rest.

(3.) THE appellant/plaintiff has pleaded that on 27. 11. 1984 the defendant No. 1 executed deed of mortgage of his house situated at Rani Talaiya, Chhatarpur and deed of hypothecation of the goods in the shop was also executed by defendant No. 1, That defendants have not paid the amount of Rs. 69,563. 45 even after the service of the legal notice and as such a decree be passed for the principal amount along with the interest at the rate of 15% per annum.