OMPRAKASH AGARWALA Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Defendant No. 2 is the appellant against the judgment and decree of the Subordinate Judge, Titilagarh, in Money Suit No. 64 of 1976 wherein the suit filed by the State Bank of India has been decreed to the extent of Rs. 16,245.44 paise.

(2.) Plaintiffs case in brief is the defendant No. 1 is a partnership firm of which defendants 2 to 5 are partners. The defendants approached the plaintiff for cash credit accommodation and the plaintiff granted a cash credit accommodation to the extent of Rs. 20,000/- for the purpose of business of defendant No. 1. Defendant No. 1 through its partners, Omprakash Agrawal (defendant No. 2) executed an agreement for cash credit on security of pledge of goods, produce and merchandise. It was also agreed that the advance under the agreement would not exceed Rs. 20,000/- and interest to be charged thereon would be at the rate of 2 per cent above the rate of interest that is granted by the State Bank of India. The plaintiff Bank was authorised to sell or dispose of the goods pledged in the event payment was not made to reimburse itself and if still something remained due then the defendants would pay the same together with interest at 12 per cent per annum. The plaintiff appended a statement of accounts in Schedule A to the plaint indicating the dates of payment and balance remained unpaid and ultimately filed the suit for a decree for Rs. 16,245.44 paise.

(3.) The defendant filed a written statement denying all the allegations made in the plaint. It was also stated that the suit was barred by limitation and defendants were not liable either jointly or serverally for the amount in question.