BANK OF BARODA Vs. OFFICIAL LIQUIDATOR AND OTHERS

JUDGEMENT

(1.) This is an appeal filed by the plaintiff-Bank against the judgment and decree dated 11.3.1981 passed by the Vth Additional District Judge, Indore in Civil Suit No. 46-B of 1974 (Old Nl. 19-B of 1969).

(2.) The facts giving rise to this appeal, briefly stated, are as follows :

(3.) In the cash-credit account of the defendant-Company evidencing various transactions a sum of Rs. 57,990.60 stands as debit balance on 1.10.1969. According to the plaintiff the defendant-Company was operating the account in most unsatisfactory and irregular manner and the defendants were reminded by the plaintiff-Bank to clear off the advance every year but to no effect. The plaintiff-Bank, therefore, sent a notice on 9.1.69 calling upon the defendants to clear all the outstanding amount. The defendant No. 1 admitted its liability by letter dated 21.1.69 and assured to liquidate the outstanding amount by sale of goods pledged, by March, 1969. In spite of the assurance the defendant-Company did not liquidate the amount hence the plaintiff Bank filed the instant suit on 13.10.69 for recovery of Rs. 57,990.60 with pendente lite and future interest at the rate of 9-1/2% per annum against the defendant Company and its directors defendants No. 2 to 5.