UNION OF INDIA Vs. BHADHUR SINGH

JUDGEMENT

(1.) This is plaintiff's appeal against the judgement and decree dated 27/10/1997 passed by the District Judge, Bank Cases, Jammu whereby the suit for recovery of Rs. 1,45,048/- filed by the appellant has been dismissed. Following facts are not disputed

(2.) M/S Karam Sales Corporation had received cash credit hypothecated loan to the tune of Rs. 40,000/- from the appellant in the year 1978. M/s Karam Sales Corporation, 11-A/D ware house Jammu was a partnership concern of which Smt. Shukla Rohmetra respondent no. 2 was a partner. In her capacity as partner of M/s Karam Sales Corporation, she was jointly and severally liable to liquidate the loan amount. She had deposited Rs. 42,000/- under the scheme Double your money in 7 years against certificate no. 230850 and on maturity she was entitled to Rs. 84,332.50 Ps. On 22/12/1984, defendant no. 2 presented her fixed deposit receipt no. 230850 for encashment but since M/s Karam Sales Corporation had not liquidated the loan amount, therefore the appellant adjusted the amount of Rs. 55,121.60 Ps. towards the loan amount standing against M/s Karam Sales Corporation and paid the balance amount of Rs. 29,210.90 Ps to her. The appellant thus give full credit of the FDR to the defendant no. 2 in the manner stated above.

(3.) However, not satisfied with the manner the bank adjusted the amount against the liability of the firm of which she was partner, defendant no. 2 filed writ petition no. 49/85 in this court. While admitting the petition, this court vide orderdated 11/01/1985, directed the respondent appellant herein to give full credit of the FDR to the holder i.e. defendant no. 2 subject to her furnishing a security that in case the petition was dismissed, she would be liable to pay the amount to the respondent appellant herein. In pursuance of this direction, respondent no. 2 offered personal surety by executing surety bond dated 14/01/1985 which was accepted by the Deputy Registrar as directed by the Court. The appellant in compliance to the order dated 11 /01 /1985 paid the balance amount and subsequent directed dated 05/04/1985 passed in civil original application no. 04/1985 released the balance amount of Rs. 55,121.60 Ps. in favour of defendant no. 2.