ORIENTAL BANK OF COMMERCE Vs. DILA RAM

JUDGEMENT

(1.) This is a suit filed by the plaintiff -bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 for the recovery of Rs. 3,40,777.41 P.

(2.) Shortly stated, the plaintiffs case is that a loan of Rs 2, 00,000 was sanctioned in favour of defendant No. 1 for the purchase of a truck against the execution of a pronote Ex. P -10. The truck was hypothecated, with the plaintiff -bank vide hypothecation deed Ex. P -ll. Defendant No. 1 had also handed over a letter waiving his right to take advantage of any default in presentment for payment of the aforesaid promissory note as required by law. Besides, to cover the loan or the over draft he had also given letter Ex. P -13 creating security for the sum remaining unpaid towards the aforesaid loan account. Defendant No. 2 and late Kr. Sunder Singh now represented through his legal representatives stood surety for due repayment of the aforesaid loan amount by executing guarantee deeds Exs. P -17 and P -J8, which were of continuing nature in favour of the plaintiff -bank. The aforesaid loan was repayable with interest at the agreed rate in monthly instalments of Rs. 7,100. The defendants committed default in repayment of the instalments to whom notices Exs, P -4 to P -9 were sent.

(3.) The plaintiff -bank pursuant to the aforesaid loan had prepared debit vouchers Exs P -14 to P -16 and also sent balance confirmation letters Exs. P -19 to P -22 to defendant No. 1. who had duly acknowledged the same by putting his signatures thereupon on June 30, 1981, November 31, 1981, July 10, 19h2 and August 19, 1983 respectively. On August 7, 1982, another notice Ex. P -23 requiring defendant No, 1 to repay the loan amount was issued by the plaintiff -bank but of no avail Thus, the plaintiff instituted the present suit on April 3, 19&5 for the recovery of Rs. 3,40,777.4lp. inclusive of the interest as on that date.