- (1.)THIS appeal arises out of the judgment and decree dated 20.10.1990 passed by the learned District Judge (Bank Cases), Jammu.
(2.)BY the aforesaid judgment and decree passed in File No.2317 Civil -169/Civil Bank Cases, titled State Bank of India versus S. Harnam Singh and others, the trial Court decreed the suit of the plaintiff -Bank for recovery of amount, but declined to award the pendente lite and the future interest.
(3.)FACTS giving rise to this appeal, in brief, are that a loan was obtained by the defendants/respon -dent -1 to 3 for the purchase of a Tractor and executed the required documents. Whereas defendants/ respondents -4 and 5 stood sureties to pay the loan amount in case the borrowers may default in the payment of the loan. The loan amount was to be liquidated in 12 equal instalments within a period of six years. The defendants, however, paid the instalments of the loan amount of recovery up to June, 1985. They, however, committed default in payment of loan instalment. The balance sheet of the Bank also speaks that defendants for the liquidation of the loan amount have paid instalments up to June, 1985. The plaintiff -Bank, however, without waiting for the expiry period of six years, and issuing a notice to the defendants, commenced a suit for the recovery of the balanced amount against the defendants outstanding on account of the loan advanced for the purchase of the Tractor. However, defendant No.1 appeared before the trial Court in response to the notice on 20.8.1990 and admitted the claim of the plaintiff -Bank, in submitting that except after the credit of Rs.10,000/ - to 12,000/ -, deposited during the currency of the suit with the plaintiff -Bank, the same be treated to have been liquidated. Another defendant No.2, Nirmal Singh, also appeared on 23/6/1990. He also admitted the claim of the plaintiff -Bank for the recovery of the balance amount and stated that the credit of an amount of Rs.9,0007 -has already been paid during the currency of the suit. In the like manner, defendant -3, S. Mohan Singh, borrower also admitted the loan obtained from the Bank for the purchase of Tractor and had executed the agreement deed and other documents. The defendants, however, admitted and expressed their readiness to liquidate the balance amount but prayed for the waiver of the pen -dente lite and future interest. The record further shows that the defendants had paid Rs.70,051.33 to the plaintiff -Bank in cash through their counsel in liquidation of the outstanding suit amount in lumpsum at the initial stage of the suit along with litigation expenses. The trial Court after taking into consideration the bona fides of the defendants and their financial position, besides the payment of the suit amount with utmost promptitude, declined to award the pendente lite and future interest, which admittedly had already been paid by the defendants during the currency of the suit, which became the subject matter of challenge in this appeal.
Heard the arguments and also perused the record meticulously.