DOTHUAMA SAILO Vs. MIZORAM RURAL BANK

JUDGEMENT

(1.) Heard Mr. L.H. Lianhrima, learned senior counsel appearing on behalf of the appellant and Mr. T. Lalnunsiama, learned counsel for the respondent no.1. Respondent no.2 is the proforma respondent.

(2.) This is an appeal for setting aside the Judgment and order and Decree passed by the Senior Civil Judge, Lunglei in Civil Suit No.22/2010 dtd. 16/3/2016.

(3.) The brief facts leading to the filing of the present appeal is that the defendant no.1/appellant approached the plaintiff/respondent no.1 by submitting his application for Small Scale Composite Term Loan on 11/3/2002 for a sum of Rs.9,50,000.00 for his business of stone works. As a result, the defendant no.1/appellant was granted a loan of Rs.9,50,000.00 on 1/3/2004 under the terms and conditions laid down therein. The defendant no.1/appellant mortgaged his LSC No. 89 of 1974 for the purpose of bringing equitable mortgage of the loan and it was taken as security against the said loan amount. .Further, the defendant no. 2/respondent no.2 stood as guarantor and executed the Guarantee Agreement in favour of the defendant no.1/appellant on the same date itself. The cause of action arose when the defendant no.1/appellant failed to repay the loan and the plaintiff/respondent no.1 approached the Learned Court below by filing a Civil Suit under order XXXIV CPC and order XXXIV Rule 6 CPC foreclosure and sale of the mortgaged property covered by LSC No.89 of 1974 belonging to the appellant/defendant No.1, in order to recover the outstanding amount of loan Rs.6,74,991.00 due to the plaintiff on the month of May 2008 along with interest @13% p.a effecting from May 2008 till realization.