UCO BANK Vs. JAWAHAR RICE AND GENERAL MILLS

JUDGEMENT

(1.) The relevant facts for the disposal of this appeal are that defendants 2 to 5 are the partners of M/s. Jawahar Rice & General Mills, respdndent No. 1. They approached the appellant bank for grant of financial assistance. The appellant bank accepted their proposal for financial assistance and, accordingly, advanced an amount of Rs. 2,73,000/- with interest at the rate of 12% p.a. with quarterly rests for construction of building and purchase of plant and machinery. Respondents 1 to 5 executed various documents including agreement of hypothecation of goods in favour of the appellant bank. Respondent No. 6 and Khoju Ram stood as guarantors for respondents 1 to 5 and they executed a guarantee deed that in case respondents 1 to 5 fail to re-pay the loan amount with interest they will be liable to re-pay the same. Respondents 1 to 5 did not repay the loan amount on demand, therefore, the Bank filed suit for recovery of Rs. 8,85,530.50.

(2.) On notice defendants 1 to 5 appeared and contested the suit. Issues were struck and appellant bank concluded the evidence. When the suit was fixed for evidence of the defendants 1 to 5 they moved an application that the suit has abated as Khoju Ram, guarantor, had died 4/5 years back. The learned trial Court, after relying on judgments dismissed the suit being abated.

(3.) I have heard the learned counsel for the parties and perused the record.