KEWAL KRISHAN AND OTHERS Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THIS is a Regular Second Appeal filed by the Appellants under Section 100 Code of Civil Procedure against the judgment and decree dated 19.5.2001 passed by the learned Additional District Judge, Una, vide which the judgment and decree passed by the learned Senior Sub Judge, Una, decreeing the suit of the Respondent for recovery of Rs. 1,36,785.30 with costs and interest was modified and the interest for the period from filing of the suit till realization was reduced to 6%.

(2.) BRIEFLY stated, the facts of the case are that the Respondent hereinafter referred to as the Plaintiff filed a suit for recovery of Rs. 1,36,785.30 as against the Appellants, hereinafter referred to as the Defendants. The allegations made by the Plaintiff bank were that Defendant No. 1 had applied to the Plaintiff bank for a term loan for the purchase of truck on 3.7.1986. His case was sponsored by the Chairman -cum -Managing Director of H.P. Ex -Servicemen Corporation, Hamirpur (H.P.). The Plaintiff bank agreed to the request of Defendant No. 1 and sanctioned a term loan of Rs. 1,80,000/ -on 6.10.1986 to Defendant No. 1. Defendants No. 2 and 3 stood as guarantors for repayment of the amount and executed necessary documents in favour of the Plaintiff bank. The amount was to be paid in 46 equal monthly instalments of Rs. 3750/ -plus interest. The Defendants defaulted in the payment of the amount and thereafter, the Plaintiff bank filed the suit for recovery of amount alongwith interest after notice to the Defendants.

(3.) ON the pleadings of the parties, the following issues were settled by the learned trial Court: