AJAIB SINGH Vs. ORIENTAL BANK OF COMMERCE

JUDGEMENT

(1.) Learned Additional Civil Judge (Senior Division), Hoshiarpur, vide his judgment and decree dated 22-9-1997, decreed the suit in favour of the Oriental Bank of Commerce and against the defendants including the present appellant for recovery of Rs. 2,29,623/- with pendente lite and further interest at the rate of 16% per annum from the date of filing of the suit till realisation. It was stated that decretal amount would be paid by the defendants within a period of six months, failing which the hypothecated houses and mortgaged property will be liable to be sold in accordance with law for satisfaction of the decree. This decree was challenged by the defendants before the learned first appellate Court, which was also dismissed vide judgment and decree dated 4-8-1999 passed by the learned District Judge, Hoshiarpur, giving rise to the present appeal.

(2.) M/s. Hoshiarpur Brick Kiln Gram Udyog Samity had applied for loan and defendants Nos. 2 to 9 were its office bearers and defendant No. 10 was also carrying on the business of brick kiln. The defendants No. 2 to 9 had passed a resolution authorising defendants No. 2 to 4 for applying and taking loan from the plaintiff-Bank. Defendants No. 2 to 4 also stood as personal guarantee for repayment of the loan. A loan of Rs. 2,00,000/- was sanctioned to the defendants against hypothecation of goods and personal guarantee of defendants No. 2 to 11 and registered mortgage of house of defendant No. 2. The defendants failed to repay the loan. Resultantly, after serving a notice, the plaintiff-bank filed the above suit. The suit was contested by the defendants taking the objection in regard to maintainability of the suit and they denied receipt of the notice. However, receipt of loan was admitted. Learned trial Court framed the following issues:-

(3.) After providing opportunities to the parties to lead evidence, the learned trial Court answered the issues in favour of the plaintiff-Bank and against the defendants and passed the decree, as aforesaid. The learned trial Court recorded its finding as under :-