GHULAM MOHAMMAD GANAI Vs. J&K BANK LTD.

JUDGEMENT

(1.) This Civil 1st Appeal is directed against the judgment and decree dated 10.9.2001 passed by the Addl. District Judge, Srinagar, whereby suit for recovery, titled as J&K Bank v. Ghulam Mohd. Ganie & others, came to be decreed in favour of plaintiff-respondent bank and against the defendants-appellants, on the grounds taken in the memo of appeal (hereinafter, for short, impugned judgment).

(2.) Defendant-appellant No. 1 approached the plaintiff-respondent bank on 9.10.1975 for grant of loan facility for purchase of Tata Diesel Vehicle and loan facility to the extent of Rs. 95,000/- was sanctioned in his favour. He availed the facility after executing the documents viz., DP Note dated 9.10.1975 for Rs. 95,000/-, Trust Receipt, Deed of Hypothecation and Irrevocable Power of Attorney. Defendants-appellants 2 & 3 executed the Deed of Guarantee and undertook to indemnify the plaintiff-respondent bank. It is also averred in the plaint that defendant-appellant No. 1 executed DP Note dated 9.10.1981 for Rs. 77,996.77 in favour of plaintiff-respondent bank and also executed DP Note dated 30.9.1987 for an amount of Rs. 1,25,895.67. The said DP notes were executed to save the period of limitation. Defendant-appellant No. 1 failed to make the payment and committed defaults, constrained the plaintiff-respondent bank to file a suit for recovery of Rs. 3,17,693.00. Defendants-appellants filed the written statement and following issues came to be framed:

(3.) Defendants-appellants examined three witnesses, namely, Abdul Salam Ganie, Abdul Rehman Mir and Ghulam Rasool Zargar.