PENTALA GITHAVARDHANA RAO Vs. ANDHRA BANK LIMITED
HIGH COURT OF ANDHRA PRADESH
PENTALA GITHAVARDHANA RAO
ANDHRA BANK LTD.
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Kondaiah, J. -
(1.) This appeal by defendants 3 and 4 in O.S.No.49 of 1964 on the file of the Court of the Subordinate Judge. Guntur is directed against the judgment and decree granted in favour of the Andhra Bank Ltd., Guntur the 1st respondent herein, for recovery of Rs. 2,57,625.47 paise from the defendants.
(2.) The 2nd defendant the father of the defendants 3 and 4 opened various accounts such as open cash amount credit Key Cash Credit. Clean Overdraft Packing Credit and Secured Overdraft Account in the plaintiff-bank early in 1962 and was having credit facilities for carrying on his tobacco trade. He was receiving several amounts under various accounts creating security on goods on hand or on stocks reaching his godowns from day to day. Prior to opening the accounts in the plaintiff-bank he was having credit facilities from the Indian Bank Guntur wherefrom he had borrowed Rs.75,000.00 on an equitable mortgage by deposit of title deeds. According to the plaintiff-bank the 2nd defendant requested for a loan of Rs.75,000.00 for paying the same to the Indian Bank and created on equitable mortgage by deposit of title deeds as collateral security for due discharge of the then advanced money as well as the outstanding other dues under various accounts and such future advances as might be made by the plaintiff on such security. The amount of Rs.75,000.00 was paid by the plaintiff to the Indian Bank on 17-7-1962 as evidenced by Ex. A-21 and the voucher Ex. A-22. An equitable mortgage by deposit of title deeds was created in favour of the bank on 18-7-1962. Promissory notes also have been executed by the 2nd defendant in favour of the plaintiff in respect of the amounts borrowed on other accounts. The 2nd defendant was adjudged insolvent on 28/08/1963. The present suit by the 1st respondent was filed on 10/04/1964 for recovery of the amount due on various accounts referred to earlier.
(3.) The 2nd defendant and defendant 3 and 4 have filed separate written statements. The 1st defendant was set ex parte.;
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