STATE BANK OF INDIA Vs. BRAJ KISHORE PRASAD

JUDGEMENT

(1.) THIS appeal at the instance of the appellant State Bank of India is directed against the judgment dated 23rd March, 1995 and decree dated 29th March, 1995 passed in Money Suit No. 16 of 1984 whereby and where under the learned sub -Judge -II, Chaibasa decreed the suit but reduced the rate of interest from 13.5% per annum to 10% per annum.

(2.) CASE of the plaintiff -appellant in brief is that defendant - respondent No. 2 applied for cash credit facility before the plaintiff -appellant which is a banking company up to the sum of Rs. 95,000/ - on 6.12.1979 and defendant No. 2 executed several documents and surety in favour of the plaintiff -bank. The defendant -respondent Nos. 1, 3 and 4 stood as guarantor of the defendant - respondent No. 2 and defendant -respondent No. 2 availed the said case credit facility from the plaintiff bank after executing Demands Promissory Note and the Promissory Note were delivered to the plaintiff -bank by defendant -respondent Nos. 1, 3 and 4 on 6.12.1979 along with Demand Promissory Note under the signatures of defendant -respondent Nos. 1, 3 and 4. Other terms were also executed by defendant -respondent Nos. 1, 3 and 4. Defendant -respondent No. 2 appeared in the suit and filed written statement stating therein that the suit is not maintainable and it is bared by law of limitation and ultimately submitted that he is ready to pay the actual and genuine dues of plaintiff -bank and he is regularly depositing the cheque as per decision rendered in Money Suit No. 13 of 1984.

(3.) ISSUE No. 3 was the most important issue and while deciding this issue the learned Court below decided the issue in favour of the plaintiff -bank, but reduced the amount of interest from 13.5% per annum to 10% per annum future and pendelite.