GANDHARV STEEL Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) THE appeal is directed against the judgment and decree dated April 28, 1993, of III Additional District Judge, Dewas, passed in Civil Suit No. 19-B of 1992, whereby the plaintiff's suit for recovery of Rs. 3,60,931. 80 paise has been decreed with a direction of payment of interest at 14 per cent, per annum from the suit till realisation of the same with a further direction for recovery by sale of property pledged.

(2.) THIS appeal has been filed by the defendants challenging the rate of interest with a further prayer of grant of instalments. The main decree in the case has not been challenged.

(3.) THE plaintiff's case, in brief, is that the plaintiff-bank granted a cash credit hypothecation facility of limit up to Rs. 50,000 to defendant No. 1 at the request of defendant No. 2. A demand promissory note exhibit P-23 was executed. The defendants were granted cash credit facility of Rs. 1,00,000, vide promissory note exhibit P-30 and further OBD facility of Rs. 50,000, vide exhibit P-21. The defendants further executed a document, letter of undertaking exhibit P-31. A letter of hypothecation exhibit P-27 was also executed. The defendants obtained the loan, but failed to pay. As per the bank's accounts Rs. 3,60,931. 80 paise was found due against the defendants, vide exhibit P-52.