CANARA BANK Vs. RAGHAV DUBEY

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dated 10.03.1997 decree sealed and signed on 15.03.1997 passed by Sri Gauri Shankar Lal, the then Sub-judge IV, Bettiah in Money Suit No. 14 of 1989 in the matter of Canara Bank vs. Sri Raghav Dubey & Anr. whereby and whereunder the suit was partly decreed on contest with proper cost.

(2.) The plaintiff-appellant has filed the aforesaid suit for recovery of Rs. 3,12,706.20/- along with interest pendente lite and future till the final realization along with the cost of the suit.

(3.) Briefly stated, the case of the plaintiff is that the plaintiff at the request of the defendant no. 1 agreed to grant him an advance by way of a term loan of Rs. 1,44,000/- repayable at Bettiah by specified installments together with interest thereon at the rate of 6% over the bank rate with minimum of 15 per cent per annum or at such rate or rates which may be notified from time to time. The defendant no. 1 is the borrower and the defendant no. 2 is the guarantor who reside and work for gain within the jurisdiction of the court. The plaintiff advanced the loan for the purpose of purchase of Tata Truck, the defendant no. 1 created a first charge by way of hypothecation in favour of the plaintiff on all tangible and moveable property including the Tata Truck bearing Regd. No. 2601 as a security to the repayment at any time with interest thereon. The defendant no. 2 stood as guarantor. This loan was advanced to the defendant no. 1 on 11.07.1981 and the defendants became liable to repay the same to the plaintiff. The rate of interest was charged and raised from 15 % to 17 % and the intimation thereof was given by the plaintiff to the defendant. The defendants admitted and acknowledged that they were liable to pay Rs. 1,62,930.75/- on 12.03.1984, Rs. 1,81,051.45/- on 13.06.1986 and Rs. 1,65,393.45/- in respect of the said term loan. The defendants did not pay the installments as agreed and thereby have failed and neglected to pay the said amount or any interest thereof. Both the defendants are jointly and severally liable to pay the said amount. The said advance was made at Bettiah and are payable at Bettiah. The whole and material part of cause of action has arisen at Bettiah within the jurisdiction of that court.