BANSI LAL GUPTA Vs. J AND K STATE FINANCIAL CORPN

JUDGEMENT

(1.) Admitted facts of this case are that from respondent No. 1-Corporation, Smt. Sumitri Devi widow of Late Shri Amar Nath Gupta availed loan to the extent of Rs. 3,84,130/- as far back as in the year 1990. This was for establishing a printing press which he did in the name and style of M/s. Amar Printers. This loan was repayable in instalments as per loan documents together with agreed interest and other moneys as agreed to between the parties.

(2.) Admittedly after raising of the loan, repayment schedule for the same was not adhered to and since 1990 respondent is in arrears of entire amount that was availed out of the total sanctioned loan of Rs. 4, 67 lacs.It is more than 101/2 years ago i.e. on 1-3-90 when the loan was availed by the loanee which was duly guaranteed by the petitioner.2A Another salient feature of this case is that deceased loanee was the mother of petitioner. Thus he has two characters, one as a guarantor and the other as a legal representative of deceased loanee being her son.

(3.) When the amount was not forthcoming, respondent-Corporation issued notice under Section 29 of the State Financial Corporation Act. This is dated 28-9-1998. It was duly acknowledged by the petitioner vide his reply dated 27-10-1998 (Annexure "B" with the writ petition).