PUNJAB NATIONAL BANK Vs. KANA

JUDGEMENT

(1.) This first appeal under Sec. 96 CPC has been filed by plaintiff- appellant against the judgment and decree dtd. 12/8/1991 passed by the District Judge Jaipur District, in Suit No.82/1981, whereby and whereunder dismissed the suit for recovery of Rs.13,570.07 and future interest.

(2.) The facts of the case are that respondents defendants No.1&2 (hereafter 'the defendants..) obtained agricultural loan of Rs.4000.00 from plaintiff Bank on 31/1/1970 and mortgaged certain agricultural land, and defendants Nos.3 to 6 are legal representatives of the guarantor. Plaintiff claimed that loan was to be repaid in six monthly instalments along with interest at the rate of 5% above the rate of Reserve Bank of India, but minimum 9% per annum. Since defendants No.1&2 failed to repay the agricultural loan, the plaintiff filed the suit for recovery of agricultural loan on 9/11/1981.

(3.) On issuing notices respondents-defendants No.1&2 (hereafter 'the defendants..) filed written statement on 26/9/1986 and denied to have taken any loan and stated that the agent appointed by plaintiff bank obtained signatures of many agriculturists but no amount was paid to agriculturists. The said agent obtained signatures of defendants also, but no amount was given to them. The defendants are not bound by such documents. It was further stated that the plaintiff bank never cleared the accounts to defendants nor they have taken any loan. Defendants also filed amended written statement on 22/3/1991 and placing reliance on Bank.'s circular (Ex.A-1) stated that since defendants are agriculturists and the amount in question is agricultural loan, they are entitled for exemption upto an amount of Rs.10,000.00.