STATE BANK OF INDIA Vs. MOR SINGH

JUDGEMENT

(1.) THIS S. B. Civil Regular First Appeal under Section 96 C. P. C. has been filed against the judgment and decree dated 26. 11. 1988 passed by the learned Addl. District and sessions Judge No. 3, Kota in Civil Suit No. 191/1988 titled state Bank of India vs. Mor Singh and Ors. to the extent disallowing the half cost of the suit of the plaintiff-appellant.

(2.) THE brief facts giving rise to disposal of this appeal are that a civil suit for recovery of money amounting to Rs. 1,83,453. 35 was filed by the plaintiff-appellant (State bank of India) against the defendants in the Court of district Judge, Kota. Subsequently after transfer, it came for trial before the Addl. District and Sessions Judge No. 3, kota. The defendant-respondent No. 1 is borrower whereas the defendant respondent No. 2 is the guarantor. It was inter alia stated that for purchase of truck for transport business, loan was sanctioned and since the defendant did not pay it's installment, which was of Rs. 4000/- per month and total installments were 48. The first installment was due on 5th February, 1981. The defendant-respondent executed necessary documents and after making payment of some installments inspite of request made, they did not deposit the amount borrowed. In the above circumstances, a prayer was made to decree the suit for a sum of rs. 1,83,453. 35 along with interest and cost of the suit. The defendant respondent filed written statement. It was admitted by the respondent that he received loan but the dispute was raised about the rate of interest. According to the defendant, it was 5%. The learned trial court framed four issues including relief. Issue no. 1 was to the effect that the Bank authorities taking advantage of his being illeterate got signatures of the defendant on the vacant forms. Issue no. 2 was to the effect that as to whether the rate of interest was 5% per annum. Issue no. 3 was in relation to special cost and Issue no. 4 was in relation to relief. The learned trial court recorded evidence of plaintiff. On behalf of plaintiff-Bank Krishan Lal P. W. 1 was examined and thereafter closed its evidence. No body was produced in evidence on behalf of respondent. The learned trial court after hearing final submissions of both sides found on the basis of statement of P. W. 1 and on the basis of Ex. 2, Ex. 3, ex. 4 and Ex. 5 that defendant received loan of Rs. 1,92,000/-for the purchase of truck in the year 1980 and truck was hypotheticated and deed thereof Ex. 2 was executed which was admitted by the defendant. In relation to rate of interest conditions were to the effect that minimum interest will be chargeable at the rate of 11. 85% per annum. Ex. 3 and ex. 4 are the balance confirmations, which were admitted by the defendant. Ex. 5 is the statement of accounts. On the basis of evidence Issues no. 1 and 2 were decided together in favour of the plaintiff-appellant Bank and against the defendant-respondent. Issue no. 3 was decided against the defendant on the basis of findings recorded on issue no. 1 and 2. Finally the court decreed the suit for a sum of rs. 1,83,453. 35 along with interest from the date of filing of the suit till it is recovered at the rate of interest 12% per annum. The court in the facts and circumstances of the case allowed half of the cost and also looking to the condition of the defendant in relation to the decretal amount ordered that the same be paid in monthly installments at the rate of 4500/- per month. It was also ordered that first installment was to be paid on 1st February, 1989 and in case the defendant fails to make payment of three consecutive monthly installments then the appellant Bank will be entitled to recover the entire amount in accordance with law. The judgment and decree was passed on 26. 11. 1988. The appellant being felt aggrieved has preferred this regular first appeal.

(3.) I have heard the learned counsel for the appellant and perused the material available on record.