MADHUSUDAN TIWARI Vs. BANK OF BARODA

JUDGEMENT

(1.) THIS appeal has been preferred against the judgment and decree dated 16.11.1986 passed by the then Additional Subordinate Judge, Ranchi in Money Suit No. 120/49 of 1980 -82. where by the plaintiff -respondent's suit has been decreed for realisation of a sum of Rs. 28,520.32 ps. with interest at the rate of 14 per cent pendentilite and further interest till date of realisation at the same rate.

(2.) THE admitted position remains that the appellant approached the respondent -Bank for a loan for purchase of a Metador Bus. The respondent -Bank allowed a loan of Rs. 30,000/ - to the appellant No. 1. who was defendant No. 1 in the suit and defendant Nos. 2 and 3 had stood as guatantor for defendant No. 1 in the payment of the loan. The necessary documents of letter of guarantee, promissory note, deed of hypothecation etc, were also executed on 10.9.1973, while making payment of loan to the defendant No. 1 against the loan amount. Some instalment had been paid by the defendant No. 1 and those were adjusted by the Bank in the loan amount and the last instalment was paid by the defendant No. 1 on 15.7.1977 amounting to Rs. 1500/ - only and after that no further payment was made. According to the plaintiff -respondent several reminders were made to the defendant No. 1 -appellant regarding repayment of the balance amount but the same was not done and as such the suit was filed as mentioned above for realisation.

(3.) ON the basis of the pleadings of the parties, following issues were framed by the Court below: