SEELAK RAM BALHARA Vs. BANK OF BARODA

JUDGEMENT

(1.) THE present appeal is preferred by the appellants under Section 20 of the RDDBFI Act, 1993 challenging the order passed by the Tribunal on 28th February, 2013 in original application No. 178/2009 by which the application filed by the Bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 has been allowed by directing to issue Recovery Certificate for a sum of Rs. 19,25,555/ - with interest at 12.5% p.a. with monthly rests from 1st October, 2009 till the date of realization from defendant Nos. 1 to 3 who are jointly and severally liable to pay the same with costs. The relevant facts for adjudication of the present case are that the deceased appellant No. 1 was borrower and the appellant No. 2 was the guarantor who is also wife of the appellant No. 1. An application was moved during the pendency of the appeal that the appellant No. 1 has expired therefore, it was prayed that the name of the appellant No. 1 be deleted The appellant No. 2 survives and the appeal was pressed by the appellant No. 2 who was a guarantor.

(2.) THERE is no dispute in the present case that the deceased appellant No. 1 was granted loan facility by the Bank which was defaulted, therefore, the account was declared as NPA on 31st March, 1993. It was a case of continuing guarantee executed by the surviving appellant. The demand notice was served on 2nd March, 1994 and the original application was preferred by the Bank on 1st October, 2009.

(3.) THE Bank issued a notice of demand claiming the said amount from the borrower as well as guarantor and the said notice was issued on 2nd March, 1994. The said notice was not honoured and the amount as such was neither paid by the borrower nor by the guarantor.