STATE BANK OF INDIA BHUBANESWAR Vs. UMAKANTA MOHANTY

JUDGEMENT

(1.) Plaintiff Bank is appellant against dismissal of the suit for recovery of loan to defendant No. 1 as barred by limitation.

(2.) It is not in dispute that defendant No. 1 took loan of Rs. 11,500/- from the plaintiff Bank on 15-5-1970. Defendant No. 2 was the surety for such loan. It was stipulated that loan would be paid by instalments since it was a medium term loan advanced to defendant No. 1 for purchase of a power tiller with accessories.

(3.) Case of plaintiff is that interest was payable quarterly on or before 14th August, November, February and May each year. First payment was to commence from 14-8-1970. Loan with this stipulation was guarded by defendant No. 2. On 15-5-1970, defendant No. 1 hypothecated the power tiller with accessories and defendant No. 2 joined as guarantor. When defendant No. 1 failed to repay the term loan as stipulated and defaulted, plaintiff issued registered notices to both the defendants. Despite notice payment was not made. Hence taking into account payments already made, suit was filed for realisation of Rs. 14,466.63 including interest calculated up to 21-9-1923 (1973 ?) making both the defendants jointly and severally liable.