PUNJAB NATIONAL BANK Vs. M. SHAHNAZ

JUDGEMENT

(1.) This judgment shall decide the above said two revision petitions which arise out from two separate complaints and the single judgment, rendered by the State Commission, Uttar Pradesh. The facts of the revision petition No.3483/2013 (CC No.10/07) are these. Sh. Rais Ahmad (since deceased), now, represented by his wife, Ms.M. Shahnaz Parveen, complainant No.1 and their two sons Nadeem Ahmad and Azim Ahmad, along with deceased two real brothers, Late Sanjeed Ahmad and Hafiz Ahmad/complainants in second complaint (CC No. 11/07 & RP No.3484/2013), formed one firm, in the name and style of "Three Brothers". They obtained Cash Credit limit of Rs.2,25,000/- from Punjab National Bank, Branch Chandpur, District Bijnor, OP1, on 13.06.2000, after execution of the loan documents. With regard to said loan, Sh. Rais Ahmad pledged three policies, obtained from LIC and his brother pledged ten policies.

(2.) OP1 sent notice dated 17.08.2006 which was received by deceased Sh.Rais Ahmad. This notice was addressed to 'M/s. Three Brothers'. It was stated that M/s. Three Brothers had committed negligence towards re-payment of loan and were not depositing their installments, on time. As on 01.07.2006, the outstanding balance in their account was Rs.82,899/- and further, interest was increasing continuously. It was alleged that they had violated the terms of the agreement. Notice was given to them to pay the amount, within 30 days, failing which, legal proceedings would be initiated.

(3.) Unfortunately, Rais Ahmad passed away, on 04.09.2006. On 12.09.2006, Sanjeed Ahmad and Hafeej Ahmed, for the purposes of depositing amount, approached the Senior Manager, Sh. Mangal Giri Ashok, Chandpur Branch, OP2. He informed that after issuance of notice, they had surrendered all the policies, obtained payments and the balance amount was deposited in their bank account.