MAN SINGH Vs. PUNJAB FINANCIAL CORPORATION

JUDGEMENT

(1.) This is an appeal against the judgment of the Additional District Judge, Ludhiana, dated 5th December, 1975, passed under the State Financial Corporation Act, 1951 (hereinafter referred 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 No. 1 (now appellant) for purchasing a truck. He executed hypothecation deed on 16th December, 1970 in favour of the Corporation. Respondent Nos. 2 and 3 stood guarantors for re-payment of the loan. Out of the sanctioned loan an amount of Rs. 1,44,647 was advanced as loan to Man Singh respondent No. 1 which was repayable in instalments in terms of the agreement. Respondent No. 1 failed to pay the instalments as agreed. Consequently the Corporation served a notice on the respondents for payments of the arrears with interest within a period of 30 days. After the expiry of the period of notice it filed a claim under section 31 of the Act.

(3.) Respondent No. 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 November, 1975. Respondent No. 1 has come up in appeal against the impugned judgment to this Court.