NEELA ASHOK NAIK Vs. NEELA ASHOK NAIK

JUDGEMENT

(1.) THE appellant had instituted a suit for recovery of Rs. 1,42,395. 00 against the respondents. The facts in brief as pleaded in the plaint are as follows:-

(2.) THE plaintiffs at the request of defendant No. 1 granted to her loan facility in the form of Medium Term Loan for Rs. 95,000/- for purchase of Maruti Omni Bus. Defendant No. 2 stood as guarantor for the said loan amount. In order to secure the repayment of the loan, the defendants executed certain documents dated 16th May, 1991 including Guarantee Document executed by defendant No. 2 for a sum of Rs. 95,000/- and Form of Agreement furnishing security executed by defendants No. 1 and 2. The defendants agreed to repay the loan in instalments with interest at the rate of 18. 5% per annum compounded quarterly. Initially defendant No. 1 was regular in payment of instalments, but later she committed default, whereupon legal notices were sent to the defendants.

(3.) DEFENDANTS No. 1 and 2 who are respondents No. 1 and 2 in the present appeal are wife and husband respectively. One of the pleas taken in defence is that on 10th June, 1994, the defendants had requested the plaintiff Bank to adjust the amount due to the Bank from the Fixed Deposit Receipts which were lying with the Bank as security. According to the defendants the Bank should have encashed the Fixed Deposit Receipts for adjustment of the dues on default of payment of instalments. The claim of interest is also disputed.