K H ROBUANGA (NOW DECEASED) S/O CHAWNGCHHINGA (L) REPRESENTED BY HIS WIFE TUMSANGI, Vs. ZORAM INDUSTRIAL DEVELOPMENT CORPORATION LIMITED (ZIDCO) REPRESENTED BY ITS MANAGING DIRECTOR

JUDGEMENT

(1.) THE Appellants are aggrieved by the judgment and Decree dated 10 -6 -2008 passed by the learned Addl. District Magistrate (Judicial) Aizawl District, Aizawl in RFA No. 10/2006.

(2.) HEARD Mr. A.R. Malhotra, Advocate for or on behalf of Mr.

(3.) FACTS leading to this appeal are that on the basis of a loan application applied by the Appellant No. 1 to the Respondent for construction of a Hotel under the name and style "Elite Hotel" at Serchhip, Mizoram, the Respondent sanctioned an Industrial loan (term loan) amounting to Rs. 13,50,000/ -in November, 1986. Out of the said sanctioned amount, the Respondent released a total sum of Rs. 5,95,000/ -on two occasions. The Appellants, before releasing the said amount, executed a loan agreement, guarantee agreement and deed of mortgage of some landed properties by depositing original Land Settlement Certificates. Thereafter, the Respondent failed to release the remaining sanctioned amount without any reason or justification in spite of repeated requests made by the Appellants. Hence, the Appellants herein as Plaintiffs instituted a suit being Civil Suit No. 5 of 2001 before the Court of learned Assistant to the Deputy Commissioner, Aizawl for payment of compensation of Rs. 3,55,000/ -with interest @ 12% per annum w.e.f. 6 -7 -1987, for cancellation of all agreements executed by the Plaintiffs/Appellants with the Defendant, coupled with a prayer for allowing to redeem the mortgaged properties covered by LSC No. SCHP -17/1987, LSC No. SCHP -57/1986, LSC No. W -55/1986 with LSC standing in the name of the Plaintiff No. 1. The Defendant/Respondent contested the suit by filing written statement but no counter claim has been made. The learned trial Court decreed the suit vide judgment and Decree dated 12 -4 -06, canceling all agreements including the deed of mortgaged executed by the Plaintiffs/Appellants with the Defendant/Respondent and directing the Defendant/Respondent to return the landed properties covered by the aforesaid LS Cs. The learned trial Court further directed the Defendant/Respondent to pay a sum of Rs. 1 lakh as damage and compensation with interest @ 6% per annum w.e.f. 20 -10 -01.