- (1.) HEARD Sri D. S. Patni Counsel for the appellant and Sri R. C. Upadhyay Counsel for the respondents.
(2.) PRESENT second appeal has been preferred against the judgment and decree dated 14. 7. 2004 passed by the District Judge, Bageshwar allowing the appeal of defendant Sri Sher Singh and setting aside the judgment and decree passed by the Trial Court.
(3.) BRIEFLY stated appellant State Bank of India filed a suit before the Civil Judge (S. D.), Bageshwar for the recovery of Rs. 31,660/- from the defendants Sher Singh and Kunwar Singh. According to the plaintiff, defendant Sher Singh obtained a loan of Rs. 25,000/- from State Bank of India Branch Dangoli for the development of his business. The1 defendant executed a promissory note in favour of the plaintiff and also executed deed for hypothecation of property. Defendant Kunwar Singh also stood surety for the plaintiff and he executed necessary documents in favour of the plaintiff. The defendant agreed to pay 12% interest with quarterly rests on the loan amount. The plaintiff actually paid Rs. 25,000/- to the defendant Sher Singh Defendant Sher Singh did not adhere the financial discipline of the Bank and failed to repay the loan amount and interest hence the plaintiff Bank has filed a suit against defendant Sher Singh and Kunwar Singh in the Court of Civil Judge, Bageshwar.;