BANK OF INDIA Vs. SURENDRA KUMAR MISHRA

JUDGEMENT

(1.) V . Mishra, a Taxi Driver approached Bank of India, Ranchi Branch, for giving him loan for purchasing a new Ambassador Car for plying as taxi. The Bank agreed to advance loan on certain terms and conditions, which were accepted by him. V. Mishra, thereafter executed a promissory note for Rs. 16,000/ - on 9.6.1972 promising to repay the loan with interest @ 4% per annum over Reserve Bank of India rate, subject to minimum of 9% per annum.

(2.) TWO persons, namely Raj Kishore Lal and Baikunth Mishra executed letters of guarantee simultaneously on 9.6.1972 itself. On 1.6.1976, V. Mishra, the Principal Debtor acknowledged in writing to pay the total dues outstanding against him, but failed to liquidate the dues. Hence, Bank of India, filed, Money Suit No. 105 of 1978 for a decree of Rs. 20,461.91 paise with interest pendente lite on future @ 11% per annum. V. Mishra, the Principal Debtor was impleaded as defendant No. 1 and Raj Kishore Lal and Baikunth Mishra, the two guarantors were respectively made defendant Nos. 2 and 3 in suit.

(3.) TRIAL Court decreed the suit ex pane against defendant No. land dismissed ex pane as against defendant No. 3 and on contest against defendant No. 2. Defendant No. 1 alone was, therefore, directed to pay the decretal dues to the plaintiff -Bank. Plaintiff -Bank has, therefore, filed the present appeal.