PUNJAB NATIONAL BANK Vs. LALLU RAM

JUDGEMENT

(1.) This appeal has been filed against the judgement and decree dated 15th of Feb. 1991 passed by find Additional District Judge, Gwalior, whereby the suit of the respondent/plaintiff was decreed for the declaration that the Bank guarantee given by respondent No. 1 in favour of respondent No. 2 was only operative for the year 1984-85. It was further directed in the decree that the Bank guarantee for the next year was invalid in view of the alteration and interpolation made therein. The plaintiff/respondent No. I was further directed to be entitled to get the money back alongwith the papers. Costs was also allowed in favour of the plaintiff.

(2.) It was the case of the parties that the plaintiff had furnished a bank guarantee in favour of respondent 2 and 3 to the appellant Punjab National Bank for a sum of Rs. 71,000/-. Admittedly, the original bank guarantee was for the year 1984-85 extending upto 30-6-1985. The defendant/appellant had alleged that in the month of April, the plaintiff had himself deposited the premium money for extending the Bank-guarantee for another one year till 30th June, 1986 and the same Bank guarantee was extended, till 30-6- 1986 for two years 1984-85 and 1985-86 with the consent of the respondent No.1.

(3.) The plaintiff/respondent had alleged that he had never given any consent for extension of the period for another one year of the Bank guarantee. He had never deposited any money in that respect in the Bank. He also sent a letter in the form of notice on 4th of July, 1985 for return of the papers. He has simply applied on 23rd May, 1985 to withdraw the guarantee given in favour of the contractor to the other respondents. According to the respondent/plaintiff the Bank guarantee was interpolated by the bank authorities and entry for extending the Bank guarantee for another one year till 30th June, 1986 was made. It is further alleged that the application dated 23rd May, 1985 was not prepared before him. Other respondents had got the application prepared lateron on a blank paper and got signed by the plaintiff. The plaintiff prayed for declaration and his suit was decreed as aforesaid.