UCO BANK Vs. SHASHI KANT JOSHI

JUDGEMENT

(1.) The short question which arises in this appeal is whether the suit filed by the Plaintiff was within limitation or not?

(2.) Briefly stated the facts of the case are that the Defendant No. 1, Sh. Shashi Kant Joshi who is a proprietor of Defendant No. 2-M/s. Joshi Coal Company was given the facility of cash credit limit by the Plaintiff-Bank. This facility was extended to the Defendants on their request and the limit was fixed at Rs. 30,000/-. The father of Defendants No. 3(a) and 3(b) who was the original Defendant No. 3 stood guarantee for repayment of the aforesaid amount. The facility was granted on the condition that the outstanding balance would carry interest @ 18% per annum to be charged on monthly basis. It is also proved on record that this cash credit facility was enhanced from Rs. 30,000/- to Rs. 70,000/- and after enhancement also, the Defendant No. 3 stood guarantee for repayment of the amount. Since the amount was not repaid within time the Plaintiff filed a suit for the recovery of Rs. 63,102/- alongwith cost and future interest which was decreed by the learned Trial Court vide judgment and decree dated 27.5.1993.

(3.) Thereafter, an appeal was filed by the Defendants. The sole point urged in the appeal was that the suit was not within limitation. The appeal was accepted by the learned District Judge, Shimla, and the suit of the Plaintiff was dismissed on this short ground.