INDIA OVERSEAS BANK Vs. K K SHARMA
LAWS(DLH)-1996-11-47
HIGH COURT OF DELHI
Decided on November 15,1996

INDIAN OVERSEAS BANK Appellant
VERSUS
K.K.SHARMA Respondents

JUDGEMENT

M.K.Sharma, J.(Oral) - (1.)This is a suit instituted by the plaintiff against the defendants for recovery of Rs.8,54,120.35p with pendente lite and future interest till recovery.
(2.)The defendant No.l was an account holder with the plaintiff Bank. The plaintiff granted a Cash Credit facility of Rs.50,000.00 to the defendant and in consideration of the same,' a demand promissory note dated 28.10.1988 and a letter of hypothecation dated 28.10.1988 hypothecating the umbrella stitching machines, overlock machines, garments etc., lying at the premises of the defendant No.l and letter of hypothecation dated 28.10.1988 hypothecating the aforesaid machineries in favour of the plaintiff were executed. Besides, the defendant No. 2 also executed a letter of continuing guarantee dated 28.10.1988 assuring and guaranteeing repayment of the amount due from the defendant No. 1 together with interest and charges thereon. The defendant No. 1, however, after obtaining the aforesaid facilities became highly irregular in maintaining the account. Consequently, the plaintiff issued a number of reminders to the defendants. Inspite of the aforesaid efforts on the part of the plaintiff, the defendant No. I failed/neglected to regularise the account though he promised to do so each time.
(3.)On 25.10.1991, the defendant No. 1 executed a revival letter whereby the defendant No. 1 acknowledged the execution of the promissory note dated 28.10.1988 and his liability thereunder. On 2.3.1993, the defendant No. 1 acknowledged and confirmed that as on 31.12.1992, the debit balance in his account was Rs.5,15,870.35p. On the said date, that is , on 2.3.1993, the defendant No. 2 also acknowledged and confirmed the debit balance in the account of defendant No. I as being Rs.5,15,870.35p as on 31.12.1992 and executed a revival letter acknowledging her liability under the letter of guarantee dated 28.10.1988. On 3.10.1994, the defendant No. 1 executed another promissory note dated 28.10.1988 and his liability thereunder.
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