STATE BANK OF INDIA Vs. HINDUSTAN CHEMICALS CORPORATION

JUDGEMENT

(1.) THE applicant Bank instituted one suit bearing No. 505 of 1992 against three respondents before the Hon'ble High Court at Kolkata by way of presenting a plaint on September 2, 1992 before the said Hon'ble Court. THE said plaint was accompanied by thirteen exhibits. In that plaint, the applicant Bank prayed for an order for a decree for Rs. 19,89,839.94 P, against those respondents to be made payable jointly and severally and also for an order for interest from September 12, 1991 until the date of institution of the suit and interim interest and interest on judgment at the rate of 18% per annum and other reliefs.

(2.) Out of such four impleaded respondents, the respondent No. 1 being a partnership firm consisting of the respondent Nos. 2 and 3, respondent No. 3 became the partner of the respondent No. 1 on account of the sudden death of her husband named Shri Binoy Krishna Bose. The respondent No. 1, as a partnership firm, carried on the construction business; and for the reason of being given the functional working capital, it made one application on December 13, 1984 to the applicant Bank. An offer was created by the said respondent No. 1 to the applicant Bank for the purpose of a contract of debt to be covered by the Section 2(g) of the said Act. That application was treated as a request or as an appeal to the applicant Bank and the applicant Bank did not remain a passive onlooker as regards the said application. As a result, a sanction for the cash credit facility was created in favour of the said respondent.

(3.) THE number two commercial or Banking document was also a waiver declaredly made and also an undertaking declaredly made in terms of Section 98(a) of the Negotiable Instruments Act, 1981.