UNITED BANK OF INDIA Vs. DEBENDRA NATH ROY CHOUDHURY

JUDGEMENT

(1.) This is an appeal by the plaintiff, United Bank of India, against the defendant-respondent from the judgment and decree dated 18-12-86 passed in TS 20 of 1982 by the Assistant District Judge (1) at Silchar dismissing the suit for sale in default of payment of mortgage-money of Rs. 53,556.24.

(2.) The case of the plaintiff, in brief, was thus. The plaintiff-bank allowed the defen-dant the benefit of a cash credit account with a limit of Rs. 20,000.00, i.e. there was an ar-rangement of cash credit account, by which the plaintiff-bank allowed the defendant to borrow money up to the limit of Rs. 20,000.00. The payment of money advanced or to be advanced by way of loan, or performance of an engagement, was secured by (1) a mortgage by deposit of title-deeds, (2) a demand pro-missory note of Rs. 20,000.00, and (3) an agreement to pledge goods. But the defendant failed to pay the amount due. The defendant contested the suit. The case of the defendant was, inter alia, that he took the loan of Rs. 20,000.00, but at the time of granting the loan the plaintiff demanded deposit of goods stocked in the godown and, therefore, goods worth about Rs. 38,245.00 were pledged to the plaintiff-bank and the plaintiff-bank was in possession of goods as well as the keys of the godown where the goods were kept. Out of the goods pledged, the defendant took delivery of goods worth Rs. 2311.00 by depo-siting the amount in the plaintiff-bank, and as such, the plaintiff-bank retained the goods worth Rs. 35,934.00. Therefore, the suit was not maintainable. The defendant also raised the plea of limitation. The trial Court dismiss-ed the suit holding that the suit was barred by limitation. Hence this appeal.

(3.) Upon hearing the learned counsel for the parties, the points for determination in this appeal are :-