MAN SINGH Vs. PUNJAB FINANCIAL CORPN

JUDGEMENT

(1.) This is an appeal against the judgment of the Additional District Judge, Ludhiana, D/- 5th Dec. 1975, passed under the State Financial Corporation Act, 1951 (hereinafter referred to as the Act).

(2.) Briefly the facts are that the Punjab Financial Corporation (hereinafter called "the Corporation") sanctioned a loan of Rs. 1,46,000/- in favour of Man Singh respondent 1 (now appellant) for purchasing a truck. He executed hypothecation deed on 16th Dec. 1970 in favour of the Corporation. Respondents 2 and 3 stood guarantors for repayment of the loan. Out of the sanctioned loan an amount of Rs. 1,44,647/- was advanced as loan to Man Singh respondent 1 which was repayable in instalments in terms of the agreement. Respondent 1 failed to pay the instalments as agreed. Consequently the Corporation served a notice on the respondents for payment of the arrears with interest within a period of 30 days. After the expiry of the period of notice it filed a claim under S.31 of the Act.

(3.) Respondent 1 contested the petition on various grounds. The Additional District Judge accepted the petition and ordered that the hypothecated property be sold for recovery of Rs. 44,450.34 with future interest at the rate of 8 1/2 per cent per annum with effect from 19th Nov. 1975. Respondent 1 has come up in appeal against the impugned judgment to this Court.