BANK OF INDIA Vs. HARI BALLABH & ORS

JUDGEMENT

(1.) This instant civil first appeal has been filed by the appellant-plaintiff under Section 96 of the CPC against the judgment and decree dated 30/01/1996 passed by the District Judge, Baran (hereinafter referred to as 'the learned trial Court') in civil suit No. 14/1993 whereby, the learned trial Court partly decreed the suit filed by the plaintiff.

(2.) The brief facts giving rise to this appeal are that the plaintiff filed a suit for the recovery of Rs. 2,20,251/- with interest wherein, it is stated that the plaintiff-appellant sanctioned a loan (term loan) on 22/09/1984 to late Sh. Chhitar Lal and defendant Nos. 7 and 8 for Rs. 1,06,000/- and they executed an agreement in favour of the plaintiff and also a hypothecation deed of their tractor against the loan amount sanctioned to them. It was agreed that an interest of minimum 15.50% per month shall be paid against the loan amount and installments of Rs. 8,200/- half yearly shall be paid to the plaintiff against the loan amount and in default of payment of any one installment, the defendants shall have to pay entire loan amount to the plaintiff. The defendants mortgaged their 40 bigha land to the bank. Defendant Nos. 9 to 10 stood guarantor to defendant Nos. 1 to 8 against the loan amount and executed necessary documents in favour of the plaintiff.

(3.) During the pendency of the suit, Chhitar Lal expired and defendant Nos. 1 to 6 being legal representatives of the late Chhitar Lal are liable to pay the loan amount. Late Chhitar Lal and his LRs. failed to pay the loan installments in time. The plaintiff served a notice to them for payment of loan amount but they still did not pay the loan amount. A total amount of Rs. 2,20,251/- became due towards the defendants on 04/07/1993. It was prayed that the suit be decreed for Rs. 2,20,251/- with an interest @ 15.50% per month from the date of filing of the suit till actual payment of the loan amount.