NARENDRA KUMAR Vs. R F C

JUDGEMENT

(1.) Challenge in the instant Civil Misc. Appeal is made to the order dated 16.12.1994 whereby the learned District Judge, Sawaimadhopur decreed the application of recovery for the sum of Rs. 3,94,512/- in favour of the Respondents and against the Appellants, with interest @ 15% per annum. It was also directed that the Truck which had been hypotheticated in favour of the Respondent, shall be auctioned for the recovery of the decretal amount and if the amount so recovered fell short, the rest shall be recovered from the movable and immovable property of the Appellants.

(2.) The nub of the Appellants' story is that the Appellant-non-applicant No. l Narendra Kumar filed an application for raising loan to purchase a truck for transportation of goods. The Respondents applicants sanctioned a loan of Rs. 1,87,000/- to him, which Narendra Kumar duly received from the Rajasthan Financial Corporation. The Appellant No. 1 had to deposit each installment of Rs. 5,200/- per month, to repay the amount of loan. Appellants No. 2 and 3 furnished guarantee against this loan. It is alleged that the Appellant No. 1 did not pay the instalment in time and the loan amount along with the interest increased. The non-Appellants requested to clear the amount of loan, but the Appellants failed to repay the same. The Respondents-applicants filed an application under Section 31 of State Financial Corporation Act for the recovery of the aforesaid amount. The learned District judge, after conclusion of the proceedings, decided the application and passed a decree, as indicated hereinabove.

(3.) Heard the learned Counsel for the parties and carefully perused the relevant material on record, including the impugned order.