CANARA BANK SAMBALPUR Vs. VITHAL DAS CHAKUBHAI CO

JUDGEMENT

(1.) This is an ap- Against judgment and decree of B. K. Dash, Subordinate Judge, Sambalpur, dated 24-3-1993 and 31-3-1993 respectively. peal under Section 96 of the Civil Procedure Code filed by the plaintiff Bank with a prayer to realise the future interest at the rate of 18% per annum with quarterly rests from the defendant respondents.

(2.) The appellant, as plaintiff, filed Money Suit No. 191 of 1989 in the Court of the Subordinate Judge, Sambalpur for realization of Rs.3,02,922.50 paise with pendente lite and future interest at the rate of 18% per annum. The pleadings of the appellant-Bank are that it issued Bank Guarantees amounting to Rs.2,77,000/- in the account of defendants and in favour of Orissa Forest Corporation Limited and respondent No.1 executed counter guarantee in its favour. When the Orissa Forest Corporation Limited demanded the amount from the appellant, the appellant demanded the amount from respondent No. 1, but respondent No. 1 did not pay the same. However, the appellant-Bank made payment of Rs.2,68,258.68 paise to Orissa Forest Corporation as per the Bank Guarantee. After adjustment of the margin money, the respondents acknowledged the debt for Rs. 1,85,514.63 paise. Thereafter, the respondents did not pay back the amount of the Bank Guarantee for which the appellant-Bank filed the suit for realisation of the same along with interest at the rate of 18% per annum.

(3.) The defendant-respondents filed written statement denying all the averments of the plaintiff-appellant. They also denied the execution of acknowledgment of debt and payment of interest. Their specific plea was that the suit is barred by law of limitation.