Decided on March 12,2018

Shambhoo Dayal (Deceased) Appellant
BANK OF INDIA Respondents


VIVEK AGARWAL,J. - (1.) This appeal has been filed by the defendant before the trial court being aggrieved by the judgment and decree dated 04.09.2000 passed by the court of District Judge, Guna decreeing the suit of the plaintiff Bank for recovery of the loan amount of Rs. 68,882.70 with costs and interest.
(2.) The brief facts leading to the present appeal are that the plaintiff Bank had filed a suit for recovery on 14.11.1992 against Shri Shambhudayal Ladda on the ground that plaintiff Bank had advanced loan to the defendant on his written offer dated 05.06.1989 and 19.06.1989 to the effect that he shall construct a building at village Manpuriya and shall let it out to the Bank for the purpose of opening of a Branch. On 20.06.1989 a letter of acceptance was issued in favour of the defendant to the effect that Bank shall take said building on rent and also agreed to extend loan facilities to the defendant. Defendant had opened an account with the Bank and executed a promissory note on 16.11.1989 for a sum of Rs. 1,00,000/-. According to this note, defendant was required to pay interest @ 15% p.a. with quarterly rests. Defendant had also mortgaged land measuring 1.076 hectare contained in survey No.174 situated at village Manpura Kumbhraj. The amounts which were extended to the defendant were maintained and from time to time amount drawn by the defendant interest fees etc. were debited against the defendant and on 14.11.1992 a sum of Rs. 68,882.07 was due against the defendant.
(3.) As per the plaint averments the defendant did not carry out construction in terms of the plaintiff's letter dated 20.6.1989 and the construction was not as per the specification and even the map was not approved from the Bank and construction was also not completed up to 31.10.1989 nor any possession was handed over. Despite this, second installment of Rs. 20,000/- was withdrawn on 06.06.1990. In July 1990, the then Manager of the Bank inspected the building under construction and found it to be not in accordance with the specification and requirement of the Bank, besides the construction being of very low standard. It is mentioned that the defendant had received a sum of Rs. 45,100/- in installment but he did not pay the loan amount as per the agreement. Several requests were made to him to repay the loan but since it was not paid, therefore, on 11.08.1992 registered notice was given to the defendant but he gave an incorrect reply to the notices as a result suit was filed.;

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