PREMWATI Vs. PUNJAB AND SIND BANK

JUDGEMENT

(1.) SMT . Premwati, appellant has filed the present appeal by way of an indigent person and this appeal has been directed against the judgment and decree dated 19.2.1998, passed by the Court of learned Additional District Judge, Faridkot, who dismissed the appeal by affirming the judgment and decree of the trial Court dated 12.12.1992 passed by the Court of Sub Judge 1st Class, Faridkot, who decreed the suit of the bank with costs for a sum of Rs. 52,644/- along with interest at the rate of 18% over and above Reserve Bank of India rate of interest subject to the minimum rate of interest of 18% per annum from the date of suit till the date of realisation of the decretal amount with half yearly rests alongwith additional interest at the rate of 2- 1/2% per annum in view of default in payment committed by the defendants. It was further ordered that the defendants will be jointly and severally liable to make the payment of the decretal amount and the plaintiff-Bank will be at liberty to recover the decretal amount by the sale of the hypothecated mini lorry bearing registration No. PUU-8627, Engine No. S9-14512 Chasis No. 19661-DI and by proceeding against the persons and properties of the defendants.

(2.) THE case set up by the plaintiff-Bank is that a loan of Rs. 37,000/- was advanced by the bank to the defendants in order to purchase a mini Lorry on 28.9.1981. The mini Lorry was purchased for Rs. 76,740.35 and the appellant had promised to pay interest at the rate of 18% per annum on the loan amount and the Lorry in question was also hypothecated in favour of the Bank. Shri Balwant Singh appellant stood as guarantor qua the said load amount. Both the defendants confirmed their liability to pay the loan amount with penal interest at the rate of 2.5% in addition to the agreed rate of interest and that the time of the filing the suit a sum of Rs. 52,644/- was outstanding against the appellant and her guarantor.

(3.) I have heard Shri H.S. Kathuria, learned counsel appearing on behalf of the appellant and with his assistance have gone through the record of the case.