KEDAR NATH Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THIS revision has been directed against the order dated 16. 11. 1989, passed by learned Distt. Judge, Dholpur, by which he partly rejected the application of the petitioner dated 16. 11. 1989.

(2.) THE brief relevant facts of the case are that on the request of Non-Petitioner No. 2, the Non-Pet. No. l, the Punjab National Bank, Dholpur, advanced a loan of Rs. 1,93,000/- (one lac ninety three thousand) on 27. 7. 85, to the Non-Petitioner No. 2, for purchasing a truck. Subsequently, the Non-Pet. No. 2 purchased truck No. RNT 921. THE Non-Pet. No. 2, executed a pronote and other documents for the repayment of the loan with interest and also hypothecated the truck in favour of Non-Pet. No. 1, the Punjab National Bank, Dholpur. When the Non-Pet. No. 2 did not repay the loan, the Punjab National Bank, filed a suit No. 5/1987, on 9. 8. 1988, against Non-Pet. No. 2 and guarantors in the Court of District Judge, Dholpur and prayed that a decree of Rs. 2,09, 727. 80 Paisa, with interest on the same from 14. 8. 1987, at the rate of 12 1/2% be passed against the non-petitioner No. 2 and the guarantors. It was also prayed that the loan be recovered from the sale of aforesaid hypothecated truck and other properties of the defendants.

(3.) MR. Maloo, counsel for the Punjab National Bank argued that the bank advanced a loan of Rs. 1,93,000/- with interest and the Non-Petitioner No. 2 has not paid any amount against the loan. He submits that the truck has been auctioned only for Rs. 1,39,000/- and as such no amount of tax under the aforesaid Act can be deducted from this amount. He further argued that there is no liability of the bank or of the guarantors for the payment of dues against Non-petitioner No. 2.