State Bank Of India vs Joy Paints & Chemicals
1998 Latest Caselaw 737 Del

JUDGMENT

M.S.A. Siddiqui, J.

1. This is a suit for recovery of Rs.3,00,636.79 p. together with the interest @ 19-1/2% p.a.

2. Briefly stated, the plaintiffs case is that the defendant No.1 is a partnership firm of defendants 2 to 4. On 10.11.1981, the defendant No.1 through the defendant No.2 executed a demand promissory note for Rs.2,02,620.18 p. in favour of the plaintiff Bank undertaking to repay the loan together with interest @19-l/2% p.a. with quarterly rests. On the same date, the defendant No.1 through defendant No.2 also executed agreement cumidemnity bond in favour of the plaintiff-bank. Despite service of the notice dated 21st June, 1982, the defendants' did not repay the said loan. Hence this suit.

3. Case against the defendants proceeded ex parte. The plaintiff has examined Mr. Brij Mohan Mahendira data (P.W.I) and Mr. G.C. Gupta, (P.W.2) and prima facie proved its case for recovery of the amount in question.

4. It is, therefore, ordered and decreed that the defendants shall pay to the plaintiff-bank a sum of Rs.3,00,636.79p. together with interest @ 19-1/2% p.a. from the date of filing of the suit till realisation of the said amount. The defendants shall also pay costs of the plaintiff-bank. A decree be drawn up accordingly.