UCO BANK Vs. LEKH RAM

JUDGEMENT

(1.) The plaintiff UCO Bank, has filed the present suit against the two defendants for the recovery of Rs. 6,86,540. The defendant No. 1 Shri Lekh Ram is the principal debtor while defendant No. 2 is the guarantor.

(2.) A truck loan to the tune of Rs. 1,87,000 was granted to defendant No. 1 on 30.1.1982 for which defendant No. 2 stood as a guarantor. The loan carried interest at the rate of 15% per annum with quarterly rests. The loan alongwith interest was repayable in monthly instalments beginning from the month of February, 1982. Each instalment was payable by the 30th of the month. The defendants failed to repay the loan as per agreed terms. As on 3.8.1992, a sum of Rs. 6,86,540 was due from the plaintiff towards the loan. Since the defendants failed to pay the said sum inspite of having been called upon to do so, the present suit has been filed.

(3.) The suit is being resisted and contested by the defendants. Separate written statements have been filed by the two defendants.