PUNJAB NATIONAL BANK Vs. SHIVAM GUEST HOUSE

JUDGEMENT

(1.) For seeking explanation on vital aspects of this case Zonal Manager of the appellant -bank was called, he is present in person alongwith Law Officer. He has explained the procedure of loaning in a case like the one, out of which this appeal has arisen.

(2.) Admitted facts giving rise to this appeal are that respondent No. 1 through its sole proprietor applied for grant of loan for establishing a Guest House at Hamirpur to Khadi and Village Industries Board, Shimla -respondent No. 2 and its Branch Office respondent No. 3 at Hamirpur. This case was sponsored by respondent No. 2 to the appellant No. 1 vide Annexure C -10 amongst other one of the conditions besides other was as under: -

(3.) It was admitted on behalf of the appellant that respondent No. 1 invested Rs. 1 lac from his own pocket, whereas remaining Rs. 9 lacs were given as loan by the appellant in terms of letter of respondent No. 2, (supra).