PUNJAB NATIONAL BANK Vs. SHAM LAL SAWHNEY

JUDGEMENT

(1.) This appeal is directed against the judgment passed by District Judge, Jammu, in File No. 4/Civil, on 27-5-1987. By means of the impugned judgment, trial Court while decreeing the suit has allowed interest at the rate of 4 per cent from the date of institution of the suit to the date of final payment in favour of appellant-bank (hereinafter referred to as 'the plaintiff') and against the defendants, with a direction that the suit amount is payable in instalments of Rs. 300/- per month commencing from the month of July 1987. Plaintiff is aggrieved by the grant of lesser interest than what was claimed in the suit as well as by allowing instalments in the meagre sum of Rs. 300/- per month. In order to properly appreciate the respective submissions, brief facts need to be noted :

(2.) Defendant No. 1 approached the plaintiff-bank at its Gandhi Nagar Branch in Jammu Town for the grant of financial assistance. This request of defendant No. 1 was favourably considered and two facilities were provided, one was in the sum of Rs. 3700/- and the other was in the sum of Rs. 16,000/-. Both these facilities which were provided by the plaintiff-bank have been duly availed of by the defendant No. 1. Similarly both these facilities were duly guaranteed by defendants 2 and 3, who had furnished continuing personal guarantees for securing due repayment of the aforesaid financial assistance provided by the plaintiff-bank, along with agreed rate of interest and rests besides cost and other expenses. Since default had been committed, therefore, the plaintiff-bank was constrained to file suit for recovery of Rs. 31,206.34, which was due on 25-3-1985. This suit came to be filed on 15-4-1985.

(3.) So far as raising of loan is concerned, tenor of the written statement filed by defendant No. 1 does not dispute the same. Defence put forth in his written statement by defendant No. 1 is that after availing facilities in question, he establishes a Poultry Farm with the same. Unfortunately, for defendant No. 1 on account of epidemic the birds died, which resulted in causing loss to him and his project failed and he could not repay the amount in question. In this premises, defendant No. 1 urged to disallow the claim of interest because of natural calamity and thereafter prayed for payment of balance amount to be paid by him in instalments of Rs. 100/- per month.On the identical lines is the written-statement of defendant No. 3, there is no written statement on the record of the trial Court file on behalf of defendant No. 2.