ANDHRA BANK CUTTACK Vs. RAGHUNATH TRIPATHY AND OTHERS

JUDGEMENT

(1.) This is a plaintiff's appeal against confirming judgment. The suit was for realization of Rs.14,422/- with pendilite interest and future interest at the rate of 18.5% per annum.

(2.) The case of the plaintiff is that the plaintiff is a nationalized bank. Defendant no.1 through the District Industries Centre, Orissa, Cuttack applied for a loan of Rs.20,800/- to start a book-binding business under Self Employment Scheme for Educated Unemployed Youth. Defendant no.1 executed the necessary documents in favour of the bank on 27.3.1985. He agreed to repay the loan amount with interest at the rate of 12% per annum in 48 installments. As per the scheme, the money was not payable directly to defendant no.1, but through the supplier of the machinery/material etc, who in turn would supply the same to defendant no.1. Pursuant to the instructions of defendant no.1, the bank paid an amount of Rs.19,100/- to defendant no.2 to supply the machinery/material to defendant no.1. The defendant no.1 denied to have received any machinery from defendant no.2. The defendants became defaulters. The bank issued a demand notice to the defendants to pay the amount with interest. While the matter stood thus, defendant no.2 paid an amount of Rs.10,500/-. The same was credited to the loan account on 4.11.1986. A sum of Rs.14,422.25 was outstanding. With this factual scenario, the suit was filed.

(3.) Defendant no.1 filed written statement denying the assertions made in the plaint. He advanced the blank paper theory and contended that the plaintiff took signature from him in a blank document. He had not received any machinery from defendant no.2. The defendant no.2 was a partnership firm. The same was dissolved. Defendant no.5 paid half of the amount to the plaintiff.