STATE BANK OF PATIALA Vs. JOGINDER SINGH

JUDGEMENT

(1.) THE appellant -bank has assailed the judgment, decree dated 1.12.1997, passed by the learned District Judge, Una, in Civil Suit No. 160 of 1993, partly decreeing the suit of the plaintiff. The facts in brief are that appellant originally filed a suit in this court on 20.9.1993, for recovery of Rs. 3,23,930.70 alongwith costs and interest at the rate of 12.5% per annum with quarterly rests against the respondents with further prayer for passing a decree for the sale of mortgaged property mentioned in para -4 of the plaint after giving respondents reasonable time to make payment and in case the sale proceeds are found short of the decretal amount, preliminary decree for recovery of amount from other properties of the respondents be also passed.

(2.) THE further case of the appellant is the respondent No. 1 applied to the appellant -bank for term loan to the tune of Rs. 2,30,000/ - vide application dated 29.8.1987. The bank sanctioned the term loan to respondent No. 1 a sum of Rs. 1,90,000/ - was advanced to respondent No. 1 on 28.3.1988 and an amount of Rs. 40,000/ - was encashed by him on 1.7.1988. The loan was taken by respondent No. 1 for purchase of truck No. HIU 4539 and the loan was guaranteed by respondents No. 2 to 5. Respondent No. 1 executed letter of arrangement, agreement of medium term loan and also deed of guarantee, dated 25.2.1988. The respondent No. 2 being guarantor, created on 11.3.1988 an equitable mortgage of his land comprised in Khata No. 30/90, Kitas 25, measuring 57 Kanals 15 Marlas. It was agreed that respondent No. 1 will pay interest @ 4% below the State Bank of India Advance rate rising and falling per annum with quarterly rests. The amount of loan was payable in 58 monthly instalments. The respondent No. 1 defaulted the payment of the loan. He executed balance confirmation letters on 5.4.1990 and 9.1.1991. The respondent paid some amount in between, but failed to clear the loan despite notices, dated 23.8.1993 and 26.10.1992. After adjusting various payments made towards loan account by respondent No. 1, a sum of Rs. 3,23,930.70 remained due to appellant -bank against respondents on 17.9.1993, for this amount, the appellant -bank filed the suit.

(3.) I have heard the learned Counsel for the parties and gone through the record.