P J IYPE Vs. KERALA GRAMIN BANK

JUDGEMENT

(1.) The defendant in O.S. No.598/2009 of the III Additional Subordinate Judge's Court, Kozhikode has come up with the Second Appeal by challenging the judgment and decree passed by the III Additional District Court, Kozhikode, in A.S. No.71/2012.

(2.) The suit is one for realisation of money. The plaintiff is a bank. According to the plaintiff, the defendant borrowed an amount of Rs.30,000/- on 14.05.2002 from the plaintiff bank as a Personal Consumption Loan No.PCL 30/2002, by executing various documents and by agreeing to repay the same with interest at the rate of 16% per annum with monthly rests. On the same day, the defendant had allegedly executed a link letter requesting to extend and continue the mortgage already created in favour of the bank on 28.11.2000, for repayment of the aforesaid loan amount. Liabilities were acknowledged on 28.06.2004 and 31.08.2006. The defendant had allegedly deposited the title deeds described in the plaint A schedule on 28.11.2000, in respect of the property shown in plaint B schedule, thereby creating an equitable mortgage in favour of the bank. The same was continued through the aforesaid link letter.

(3.) On 14.05.2002 itself, the defendant had borrowed another amount of Rs.10,000/- by way of LDTL-10/02 loan, thereby agreeing to repay the same with interest at the rate of 14.5% per annum compounded half yearly. A link letter of the aforesaid mortgage was also executed. Liabilities were acknowledged on 28.06.2004 and 31.08.2006 by executing acknowledgments. According to the plaintiff, the defendant defaulted payment of instalments, thereby an amount of Rs.96,313/- fell due in PCL 30/02 and an amount of Rs.18,021/- fell due in LDTL-10/02, with future interest.