MANGILAL JHA AND ORS. Vs. BANK OF INDIA

JUDGEMENT

(1.) This appeal has been filed by the defendants against the judgment and decree passed in Civil Suit No. 24-B of 1978 by the Presiding Judge of the Court of Third Additional District Judge, Bhopal, decreeing the plaintiff's claim to the extent of Rs. 84,718.87.

(2.) The claim of the plaintiff-Bank, was that on 25-1-1975 a loan of Rs. 85,000.00 was granted to the defendant-appellant No. 1, for purchasing Tata diesel truck. The defendant-appellant No. 1 executed some documents and agreed to pay interest minimum at the rate of 131/2% per annum, The defendants-appellants 2, 3, and 4 jointly and severally agreed as guarantors to repay the said loan to the plaintiff-Bank. They executed a letter of guarantee in favour of the Bank on 25-1-1975. The defendants had agreed to pay the loan amount in monthly instalments of Rs. 25,500.00 per month. In case of any default, the entire loan amount was recoverable in lump sum. An amount of Rs. 98,718.97 was found due against the defendant No. 1 on 16-1-1978. The plaint was signed and verified by Shri B.G Kapur, Deputy Regional Manager of the plaintiff-Bank.

(3.) The defendant No. 1 challenged the right of Shri B.G. Kapur to file, sign and verify the plaint on behalf of the plaintiff. The defendant No. 1 denied the alleged advance of Rs. 85,000.00 as loan to him and also the rate of interest. The execution of the documents were also denied. It was contended by the defendant No. 1 that some amounts deposited by him in the Bank have not been adjusted in the Bank account, a copy of which was filed on record. It was also stated that certain amounts as expenditure have been unauthorisedly added to his account as due.