R.K. TRADERS Vs. HONG KONG BANK

JUDGEMENT

(1.) This appeal by the plaintiffs under Section 96 of the C.P.C. is directed against the judgment and decree dated 31.01.2003 passed in Civil Suit No.29-A/88 by the III Additional District, Judge, Gwalior.

(2.) Facts relevant and necessary for decision in the appeal are that the plaintiffs/appellants filed a Civil Suit against the respondents alleging that the plaintiff No.1 was registered as partnership firm engaged in wholesale trade of cloth and was also stockist of D.C.M. Silk Mills, Delhi for the purpose.

(3.) The defendant/respondent No.1 was formerly known as Mercantile Bank, Ltd. The said bank had sanctioned a credit limit of Rs.7,00,000/- in favour of plaintiff/appellant firm. As a security to the aforesaid credit limit, the plaintiff No.1 pledged with the respondent No.1 bank a Fixed Deposit receipt for Rs.70,000/- which was issued by the defendant/respondent No.2 in the name of the plaintiffs No.1 and 2. The D.C.M. Silk Mills stood surety for the aforesaid limit.