MALTI GULATI Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THIS appeal has been filed by two persons, namely, Ms. Malti Gulati and Shri Adarsh Gulati. They were defendant Nos. 6 and 7, respectively, in O.A. No. 374/95 -- Punjab National Bank v. M/s. Sakar Contracts India Pvt. Ltd. and Ors.

(2.) This appeal is against order dated 28.5.1997 passed by the Tribunal below in the aforesaid O.A. The grievance of the appellants is that even though the appellants were neither the borrower of the loan nor the guarantor still the entire loan liability with interest has been decreed against them jointly and severally along with the rest of the defendants who were either the borrowers or the guarantors. The appellants contend that for the loan, they had only mortgaged their property and, therefore, their liability was only to the extent of the value of the mortgaged property. They say that the decree against them ought to have been limited to the sale of the mortgaged property and not a personal decree against them.

(3.) IN the aforesaid situation, the appeal succeeds and the impugned order is modified to the extent that after the sale of the mortgaged property, if the entire decretal amount is not recovered, the balance amount shall be recovered from only Defendant Nos. 1 to 5 jointly and severally. Appeal is allowed with costs.