KALINDI MOHN Vs. BANK OF MAHARASHTRA

JUDGEMENT

(1.) The appellant, borrower, being aggrieved of the judgment and decree dated 18.11.97 passed by the District Judge, Balaghat in C. S. No. 16-B/91 has preferred .the present appeal. The learned District Judge vide impugned judgment has decreed the suit preferred by the respondent No.l, Bank of Maharashtra for recovery of Rs.14,47,000/- along with interest @ 20% per annum and cost.

(2.) The facts giving rise to filing of the suit for recovery and the judgment and decree thereof are that the Appellant and Dadulal Pariwal & Brijrani Pariwal for constructing Savita Talkies in Waraseoni were granted loan facilities in the nature of term loan, dash credit facility and the over draft facility. The various amounts which were advanced towards aforesaid loan facilities were the term loan of Rs.4,00,000/-(Four lacs) on 25.6.82, cash credit facility of Rs.1,18,000/- on 16.7.86, working capital by way of over draft facility of Rs.60,000/- on 11.10.86 and Rs.25,000/- on 11.10.88. In order to avail aforesaid loan facilities the appellant and other partners, viz, Dadulal Pariwal and Brijrani Pariwal executed various security documents, viz, the demand promissory note dated 5.12.85, 16.7.86 & 11.10.88 and term loan agreement dated 5.12.85,16.7.86 & 11.10.88 hypothecation of plant and machinery dated 5.12.85, 16.7.86 & 11-1Q-88 letter of guarantee dated 5.12.85 & 16.7.86. Besides the aforesaid security documents, the appellant and -his aforesaid partners created an equitable mortgage by deposit of the title deeds of their immovable properties situated in village Wara, Tehsil Waraseoni District Bakghat bearing Khasara No. 730/2, 731/1,1047/1,1049/2,1049/4, 1049/ 6,1049/6,1057/3, 1052/5 admeasuring 2.41 acres and the land situated in Sikendra Tehsil Waraseoni District Balaghat bearing Khasara No. 285/2(cha) admeasuring 3054 sq. ft. That during the subsistence of the aforesaid loan facilities the two partners viz, Dadulal Pariwal and Brijrani Pariwal died, thus, leaving the appellant to be the sole proprietor of the Savita Talkies, wherefor the aforesaid loan facilities were availed. That subsequent to the death of the aforesaid partners, Surajlal Bisen and Ramchand, respondent Nos.2 and 3 executed the letters of guarantee dt. 11-10-88 in respect of the aforesaid loan facilities, thereby guaranting the due repayment of the amount due in respective accounts along with interest thereon. The appellant acknowledged his liability to repay the loan amount along with interest by executing the letter of acknowledgment on 11-10-88.

(3.) That various loan facilities though were availed of by the appellant but there was default in repayment resulting in the amount due, to the extent of Rs. 14,47,000/- as on 10.10.91 when the suit was filed by the respondent Bank for its recovery and for sale of the immovable property mortgaged. The appellant/defendant No. 1 denied his liability and prayed for the dismissal of suit on the ground that the suit was hot maintainable because of the mis-joinder and was not properly constituted and that the suit was time barred. It was further averred that since the Bank has failed to provide the working capital in time the same resulted in delayed fructification of the venture and therefore was not able to make payment within time. The trial Court having considered the material evidence on record decreed the suit for recovery of Rs. 14,47,000/- alongwith interest @ 20% per annum and for the property.