- (1.) By this common judgment, I am disposing of two appeals i.e. RSA No. 3320 of 2007, titled M/s Avtar Singh & Sons and Others v. Bimla Devi and Others and RSA No. 2690 of 2007, Bimla Devi and another v. Oriental Bank of Commerce and Others because both these appeals have arisen out of a single suit. Hereinafter facts are being taken from RSA No. 3320 of 2007.
(2.) Respondent No. 10 - plaintiff Oriental Bank of Commerce filed suit against defendants No. 1 to 3/appellants as principal debtors and against respondent nos. 1 to 9 (defendants No. 4 to 12) as guarantors. Defendants No. 2 and 3 are partners of defendant No. 1-Firm. The plaintiff alleged that defendants No. 1 to 3 availed of cash credit clean over draft facility for Rs six lakhs from the plaintiff on the guarantee of defendant No. 4 and Sham Lal (since deceased and represented by defendants No. 5 to 12). Defendants committed default in repayment of the loan amount. Ultimately suit amount of Rs 7,01,337/-remained due from the defendants to the plaintiff for recovery whereof plaintiff filed the instant suit.
(3.) Defendants No. 1 to 3 pleaded that recovery of the suit amount be firstly made from defendants No. 4 to 12 (guarantors) and if still some amount remains due, the same may be recovered from defendants no.l to 3 (principal debtors). It was also pleaded that plaintiff is claiming penal interest which is not recoverable. Plaintiffs account statement was also pleaded to be incorrect.;