CANARA BANK Vs. R.S. VASAN

JUDGEMENT

(1.) THE complainant 's case revolves around the question 'whether he had stood guarantor/security for loanee, Shri C. K. Prabhakaran and had mortgaged his FDRs as security for the said loan '.

(2.) THE case of the complainant, Shri R. S. Vasan is that he introduced one, Shri C. K. Prabhakaran to the Canara Bank, opposite party on 22.6.1996  and the bank extended an overdraft facility to Shri C. K. Prabhakaran in the sum of Rs.1,00,000/ - against immovable property to the extent of 12 1/2 cents in Kainoor Village owned by Shri Vilasini, the wife of Shri C. K. Prabhakaran.

(3.) THE complainant had no intention to be a guarantor or a surety for the said overdraft facility.  However, the term deposit receipt of the complainant was with the opposite party bank in safe custody.  Here lies the catch.  The complainant was made to sign some blank papers.  Shri Prabhakaran expired on 7.6.2001.  The opposite party, Bank informed the complainant vide letter dated 22.6.2003 that the overdraft facility had been given on complainant 's security and a sum of Rs.1,36,135.50 could be liquidated against his term deposit.  The complainant immediately replied denying his liability.