VIJAYA BANK Vs. KAILASH BHUGRA

JUDGEMENT

(1.) Suit was for recovery of money lent and advanced. By an Order dated September 26, 1995 the plaintiff was allowed to serve the defendants by way of substituted service by affixing a copy of the Writ of Summons in a conspicuous part of this Hon ble Court and in a conspicuous place at the place of the business of the defendant by a report dated September 16, 2013 the Senior Master and Official Referee stated that, the Writ of Summons of the suit along with plaint was served on the Defendant No. 2 by the District Judge, Alipore, 24- Parganas. The plaintiff affixed the Writ of Summons at a conspicuous part of this Hon ble Court. The plaintiff adduced evidence through one witness. The plaintiff proved various documents.

(2.) I have considered the pleadings, the evidence, the documents exhibited in the suit. The Defendant No. 1 was the sole proprietress of Messrs. Packwell. The Defendant No. 2 was the sole proprietor of Messrs. Surya. The defendants approached the plaintiff for cash credit facility in February 1985 which was granted to the Defendant No. 1. The stock-intrade as well as other assets of the business of the Defendant No. 1 was charged to the plaintiff as security for due repayment of the plaintiff s loan. In consideration of the plaintiff granting such credit facilities, the Defendant No. 1 executed various documents in favour of the plaintiff. Such documents were demand promissory note, letter of undertaking, declaration as to sole proprietress of the business, letter agreeing to pay additional interest of 2.25% per annum upon default of payment, letter agreeing to pay interest at the agreed rate, letter agreeing to pay interest at the minimum rate of 16.5%, agreement of hypothecation of machinery and other movables.

(3.) The Defendant No. 2 executed a letter of guarantee dated February 8, 1985 which was marked as Exhibit J . By a letter dated March 10, 1987 which was Exhibit K , the Defendant No. 1 acknowledged a sum of Rs.1,79,849.64p to be due and payable by the Defendant No. 1 as on March 10, 1987 including interest up to December 31, 1986. By such letter the Defendant No. 1 acknowledged that interest accrued due from January 1, 1987.