ACHYUT BARTHAKUR Vs. THE STATE BANK OF INDIA

JUDGEMENT

(1.) THIS first appeal is directed against Judgment and Decree dated 11.10.2002 passed by the learned Civil Judge (Sr. Divn.) at Jorhat in Money Suit No. 92/1992 decreeing the suit for Rs. 6,67,530/ - against the defendants with cost and interest at the rate of 12% per annum till the date of decree and 6% per annum on decretal amount till realisation.

(2.) THE defendant No. 2 of the Money Suit No. 92/1992 was the owner of defendant No. 1, a business concern known as Vaskar Oil and Flour Mills. Defendant No. 2 prayed for loan from the plaintiff/bank and the bank sanctioned a loan of Rs. 3,80,000/ - on 05.11.1984 laying down stipulated terms and conditions in the sanction letter itself. The loan was sanctioned in three different categories, namely, Rs. 1,41,000/ - by way of Medium Term loan, Rs. 2,00,000/ - towards Cash Credit loan and a sum of Rs. 39,000/ - towards Equity Fund Assistance. It was the case of the plaintiff that defendant was irregular in making repayment since beginning and so interest at compound rate continued accruing to the amount as per the term of sanction. As on 07.12.1992, the amount became as high as Rs. 7,13,916/ - but the defendant No. 2 or his guarantors who are defendant Nos. 3 and 4 did not make any payment. Situated thus, bank was compelled to institute a suit for realisation of Rs. 7,13,916/ - along with interest thereon, both pendente lite and future.

(3.) ON the basis of the rival contentions of the parties, the learned Court framed as many as 6 (six) issues as follows: - -