AB REHMAN NATH Vs. J&K BANK LTD

JUDGEMENT

(1.) BY the medium of this revision petition, the petitioner has challenged the order dated 11th June, 1999 passed by learned Additional District Judge (Bank Cases), Srinagar in the case titled as Jammu & Kashmir Bank v. M/S Abdul Khaliq Nath and others filed No. 396, on the grounds taken in the memo of petition.

(2.) IN order to return finding, the facts of the case are to be noticed. The plaintiff/respondent No. 1 filed a suit for recovery against M/S Abdul Khaliq Nath, Abdul Rehman Nath and Abdul Khaliq Nath on 7th June, 1993 in this Court. It is averred in the plaint that defendant No. 1, namely, M/S Abdul Khaliq Nath (borrower) approached the plaintiff bank in the year 1981 for grant of financial accommodation through its proprietor i.e. defendant No. 2, namely, Abdul Rehman Nath, petitioner herein.

(3.) THE plaintiff bank sanctioned a cash credit facility to the tune of Rs. 50,000/ - in favour of the borrower i.e. defendant No. 1 and the same was availed by the borrower after execution of documents. The defendant No. 3 mortgaged his two storeyed house with land underneath and appurtenant thereto standing in the name of defendant No. 3 situated at Magarmal Bagh, Srinagar in favour of the plaintiff as collateral security vide collateral security deed dated 17th April, 1981 and registered on 20th April, 1981. The defendant 3 also executed an irrevocable power of attorney on 17th of April, 1981 and also an affidavit on the same date. In terms of the irrevocable power of attorney, the defendant No. 3 appointed the plaintiff as attorney of defendant No. 3 authorizing the plaintiff to sell the entire or part of the mortgaged property and to deposit the sale proceeds towards the adjustment of loan account of the borrower, in case borrower fails to liquidate the loan amount. The cash credit facility was enhanced to the tune of Rs. 85,000/ - in favour of the borrower at the request of defendant No. 2 being sole proprietor. The borrower executed documents referred in para -7 of the plaint and defendant No. 3 also executed the documents. The plaintiff has prayed for passing of a decree for an amount of Rs. 3,81,280/ - in favour of the plaintiff bank against the defendants and, passing of a preliminary decree for sale of mortgaged properties and, awarding costs and any other relief which the court may deem fit.