UCO BANK Vs. DEEPAK ELECTRONICS AND ORS.

JUDGEMENT

(1.) PLAINTIFF Bank feeling aggrieved by the judgment and decree passed by learned District Judge, Kullu on 1.1.2002 in civil appeal No. 59 of 2001 is in second appeal before this Court. The complaint is that learned lower appellate Court while brushing aside the cogent and reliable evidence produced by the plaintiff has agreed with the findings recorded by learned Senior Sub Judge, Kullu in the judgment rendered in Civil Suit No. 11 of 1996 on 2.1.2001 whereby the suit for recovery of Rs. 1,16,048/ - filed against the respondent, hereinafter referred to as the defendants, was dismissed.

(2.) THE appeal has been admitted on the following substantial questions of law:

(3.) IF coming to the factual matrix, defendant No. 1 through its proprietor defendant No. 2 has approached the plaintiff -Bank for the sanction of facility of cash credit limit to the tune of Rs. 30,000/ - in the year 1989. Later on he approached for enhancement of the limit from Rs. 30,000/ - to Rs. 50,000/ -. The request so made were acceded to by the plaintiff -Bank and on execution of the various documents, the facility of cash credit limit initially was sanctioned to the tune of Rs. 30,000/ - and later on enhanced to Rs. 50,000/ -. The rate of interest as agreed upon was 14% per annum, calculable on daily balance with quarterly rests. Defendant No. 3 stood guarantor for defendants No. 1 and 2. The limit was valid for a period of one year with discretion of the plaintiff to review the same on year to year basis. The defendants allegedly bound themselves to deposit the daily sale proceeds, submit the stock statement, and comply with the terms and conditions on which the facility was sanctioned. Defendants, however, later on became irregular in the payment of the outstanding amount and the said amount i.e. Rs. 1,16,048/ - became due and recoverable from them together with interest. Hence, the suit.