RADHA KISHAN KALVANIYA Vs. UCO BANK AND OTHERS

JUDGEMENT

(1.) This writ petition has been filed against the action of U.Co. Bank, Rural Development Branch, Chittora - Renwal for the reason that the FDR purchased by the petitioner has not been refunded even inspite of the fact that the said FDR has matured on 21.11.90. The petitioner has given a guarantee for obtaining the loan by Govind Sahai Sharma and Laxmi Devi from the bank. From the said loan a tractor was purchased and the payment to the bank was not made.

(2.) Mr. Sharma, appearing on behalf of Govind Sahai Sharma submits that the said tractor is in possession of Radha Kishan Kalvaniya who was the guarantor and there was a verbal understanding that from the earning of the said tractor, the amount would be paid to the bank.

(3.) Mr. Garg, appearing on behalf of the bank submits that the matter is covered by the decision of the Apex Court in the case of Punjab National Bank Vs. Surendra Prasad Sinha, AIR 1992 SC 185 , wherein it was held that the adjustment of the FDR, security deposited by the guarantor on maturity of the said deposit is permissible.