PUNJAB NATIONAL BANK Vs. SWARAN KAUR

JUDGEMENT

(1.) This Regular First Appeal at the instance of the Punjab National Bank is directed against the decree and judgment dated 22.9.1990 passed by the District Judge, Chamba Division at Chamba, whereby its suit filed against the original defendant Himmat Singh was dismissed on the ground of limitation, besides other grounds. Original defendant Himmat Singh had died during the pendency of the suit and the respondents were brought on record as his legal representatives.

(2.) The brief facts of the case, which are not in dispute, are that the parties had entered into an agreement dated 27.11.1979 under which the appellant -plaintiff Bank was to advance a loan of Rs. 35,000/ - to Himmat Singh to reconstruct his building according to its specifications and thereafter to lease the building to the Bank at the monthly rent of Rs. 1,000/ - and to mortgage the said building as security for repayment of the amount advanced to Himmat Singh. It is not in dispute that the Punjab National Bank did pay an amount of Rs. 27,000/ - to Himmat Singh under the agreement, though not within the stipulated period of three months, but the agreement for leasing out the building seems to have been abandoned for which both the parties are blaming each other for non -completion of the building within the agreed period.

(3.) In this background, it is clear that the sum of Rs. 27,000/ - though advanced as a loan to Himmat Singh by the Punjab National Bank was not a case of loan pure and simple, as this amount was paid in consideration of the agreement dated 27.11.1979 under which Himmat Singh was to lease out the building in favour of the Punjab National Bank after completing it within the stipulated period according to the specifications of the Bank and in the event of his failure to do so, some specific remedies were provided to the Punjab National Bank under the agreement.