DENA BANK Vs. ASHOK TRADERS

JUDGEMENT

(1.) INVOKING appellate jurisdiction of this Court under Section 96 of the Code of Civil Procedure, 1908 appellant Dena Bank has filed this appeal challenging the legality, validity, propriety and correctness of the judgment and decree dated 4-7-91, passed by Additional District Judge, Hoshangabad in Civil Suit No. 1-B/90.

(2.) FACTS leading to the filing of this appeal in nutshell are that appellant-plaintiff Dena Bank filed a suit against the defendants alleging that respondent Tharumal was doing business in the name and style of Ashok Traders. He made an application on 6-1-82 to the Branch Manager of the Harda Branch of the plaintiff Bank for grant of loan of Rs. 3,300/- for the purpose of purchasing some machine and a loan of Rs. 20,000/- as working capital loan.

(3.) ON 13-1-82 the said Branch Manager sanctioned a term loan of Rs. 3,300/- in favour of the Bank. For the repayment of sanctioned term loan of Rs. 3,300/- defendant Tharumal duly executed a term loan agreement of hypothecation. On the same day, Prem Shanker Pandit (since deceased) and Bhojraj respondent No. 3 executed the documents Exs. P-9 and P-10 respectively in favour of the bank. They jointly and severally agreed and guaranteed for due payments of the aforesaid two loan amounts with agreed interest and all expenses.