G M PLASTICS INDUSTRIES Vs. BANK OF INDIA

JUDGEMENT

(1.) The appellants/defendants, being aggrieved partly by the judgment and decree dated 3rd December, 1990 rendered by the District Judge, Dhar in Civil Suit No. 7-A/83, thereby decreeing the suit of the respondent/Bank against the appellants for Rs. 1,08,191.02 Ps. together with interest at the rate of 12% p. a. from the date of filing of the suit till realisation of amount.

(2.) The facts in brief lie in narrow compass. Appellant Girish, proprietor of M/s. Plastic Industries was sanctioned loan of Rs. 60,000/- and 20,000/- respectively in Demand Loan A/c. and Cash Credit A/c. for purchase of machinery for his industries by the respondent/Bank. It was agreed between the parties that the appellants shall pay the interest on the amount of loan sanctioned, at the rate of maximum 2% over and above the existing Bank Rate @ 11% at quarterly rest. The loan sanctioned to the appellants was required to be repaid in equal instalments together with the interest accrued thereon. The appellants have executed certain traditional documents in favour of the respondent/Bank for the security of the loan sanctioned to the appellants. Appellant No. 2, Hiranand stood surety for it. The plaintiff/Bank advanced the loan amount to the appellant No. 1 as sanctioned. Appellant No. 1 was defaulter in paying the instalment and as per plaint allegation, on 30.1.83, amount of Rs. 82,006.33 Ps. was found due against the appellants in Demand Loan A/c. and Rs. 26,184.69 Ps. were found due in Cash Credit A/c. Thus, Rs. 1,08,191.02 Ps. was due against the appellants in toto, on the date of the suit. Therefore, the plaintiff/Bank filed the suit against the defendant/appellants.

(3.) Appellants filed written statements in oppugnation and opposed the plaintiff's claim. Learned District Judge framed the issues and on the basis of the evidence of the parties, decreed the suit in favour of the respondents and against the appellants for the recovery of Rs. 1,08,191.02, together with interest at the rate of 12% p.a. from the date of filing of the suit till realisation of the amount. Learned District Judge also directed that whatever amount was paid by the defendant/appellants during pendency of the suit, it shall be adjusted in the decretal amount and ordered to pay remaining amount to the respondent in three equal instalments on 31.3.91, 31.3.92 and 31.3.93 respectively. The District Judge also directed that in case of default of any instalment, rest of the amount shall be recovered in lumpsum. It was also directed that till the payment of decretal amount is made, the appellants/defendants shall not dispose of any immovable property, mortgaged with the Bank by way of security.