BANTA SINGH Vs. STATE BANK OF PATIALA

JUDGEMENT

(1.) BANTA Singh appellant applied for a loan on 18th December, 1969 for the purchase of a diesel engine. A sum of Rs. 5886. 50 was sanctioned for the aforesaid purpose and a mortgage deed securing the loan was also executed. The loan was payable in five half yearly instalments of Rs. 1000.00 each and the last instalment was payable in January 1971. As the appellant did not make the payments, the present suit was filed.

(2.) IN the written statement filed by the defendant-appellant, it was submitted that though the loan of Rs. 5000.00 had been sanctioned yet only Rs. 2285.00 had, in fact, been disbursed as the balance price of the engine i. e. Rs. 2715.00 was to be paid to the Dealer.

(3.) THE trial Court decided issue No. 1 in favour of the plaintiff; issue No. 2 against the defendant and under issue No. 3 held that only a sum of Rs. 2,285.00 that had been admitted by Banta Singh as having been paid to him, was due from him. The trial Court also calculated a sum of Rs. 688. 02 towards interest and partly decreed the suit. The matter was taken in appeal by the respondent-bank and the appellate Court allowed the appeal and decreed the suit in toto. The appellate Court came to the conclusion that from the document Exhibit P-11 it transpired that a sum of Rs. 5,886.00 had been sanctioned and Exhibit P-8 a cash memo/credit memo in respect of the purchase of the diesel engine which proved that a sum of Rs. 2,534.00 had been paid to the dealer directly by the Bank and the fact that the balance amount had been received by Banta Singh proved that a total sum of Rhad in fact been paid to him. The appellate Court however agreed with the finding recorded by the Lower Court with respect to the Banta Singh's liability for an additional sum of Rs. 886. 50 and held that it could not be said that this was a finance charge and was, in fact, an amount that was to be adjusted towards the interest payable on loan. Hence this second appeal at the instance of the defendant.