BANK OF BARODA Vs. SANTI CONSTRUCTION

JUDGEMENT

(1.) BY means of this application under Articles 226/227 of the Constitution of India, the petitioner Bank has assailed the legality and validity of the order passed by the trial Court firstly refusing to grant adjournment in respect of hearing of the particular suit and secondly, dismissing the suit upon expunction of evidence of particular witness.

(2.) BRIEFLY stated, the facts leading to filing of the instant applications are as follows:-The respondents No. 1 to 4, of which the Respondent No. 1 is the partnership firm registered under the Partnership Act, 1932 with the Respondents Nos. 2,3 and 4 as partners were sanctioned with a credit facility in the nature of cash-credit facility (Supply Bill) account by the petitioner-Bank to the tune of Rs. 9,00,000/- with the terms and conditions as stipulated in the letter of sanction dated 23. 09. 1986. The respondents availed the credit facility by executing various loan documents on 27. 09. 1986 in favour of the petitioner-Bank and also created mortgage of some properties. After 27. 09. 1986 also, the respondents executed various other loan documents from time to time acknowledging their liabilities towards the petitioner.

(3.) ACCORDING to the petitioner, the respondents availing the aforesaid credit facility from the petitioner-Bank committed severe breach of covenants contained in the security documents and committed default in re-payment of dues. Situated thus, the petitioner-Bank issued demand notice dated 07. 02. 1995 whereby the respondents were called upon to pay the sum of Rs. 1, 05,966. 07 with interest calculated upto 30. 06. 1994 being the balance due under the Cash-Credit (Supply Bill) Account.