J S TINS FABRICATORS Vs. U CO BANK

JUDGEMENT

(1.) The order passed on 30/04/1992 by the learned single Judge of this Court in OMP No. 398/91 is under challenge in this appeal at the behest of defendants.

(2.) On 24/02/1988 the plaintiff-bank filed suit for recovery of Rupees 2,46,116.25 paise against the defendants alleging that at the request of defendants certain loan facilities were provided to them, which they availed of and despite demands failed to liquidate their liability. A decree for the aforesaid amount along with future interest has been claimed in the suit.

(3.) The suit was resisted by the defendants, who filed their written statement on 17/05/1989. While admitting the fact that loan facility was availed of by them, it was averred that the rate of interest agreed to was to the tune of 151/2% per annum and not 171/2% per annum because as per the agreement the interest payable was to be as per the norms of the Reserve Bank of India issued regarding the Small Scale Industrial Units from time to time. The rate of interest as per the Reserve Bank of India guidelines was 151/2% per annum at that time. It was also averred that the defendants became irregular in repayment of loan in view of the situation in Punjab and due to non-payment of the defendants dues by the parties to whom goods have been supplied by the defendants. Defendants also stated that they are still willing and ready to make the payments in case the plaintiff comes forward with clean hands with proper calculations of interest and with a demand of real amount due from the defendants. It was claimed that the suit was not within the period of limitation and to bring it within limitation the plaintiff-bank had used certain blank papers, which had been got signed in bulk.