Canara Bank v. Mrs. Shakila N. Rai & Anr.
Case at a glance
Provisions considered
- Code of Civil Procedure, 1908 O. VIII r. 10
Judgment
..Plaintiffs. Canara Bank Vs. Mrs. Shakila N. Rai & Anr. ..Defendants. ----- Mr. R.C. Dubey i/b M/s Sanjeev Kanchan & Co., for the Plaintiff-Bank. ---- CORAM: A.A. SAYED, J. DATE : JUNE 28, 2012. P.C.: 1 The Plaintiff-Bank has filed this suit for recovery of sum of Rs.4,67,962.34 with further interest thereon @ 20.29% per annum from the date of suit till payment or realisation. 2 The Plaintiff-Bank has granted Open Cash Credit Limited of Rs.3,00,000/- on or around 1.9.1995 to the Defendants. The Defendants agreed to repay the amount with interest @4.5% per annum above the Reserve Bank of India rate with a minimum of 16.5% p.a. and further 2 S.2592-2000.sxw additional interest @2% p.a. above agreed rate. The Defendants executed the following documents, all dated 1st September, 1995: (i) Demand Promissory Note; (ii) Letter of Undertaking; (iii) Letter agreeing to bear Guarantee Fees payable to DICGC; (iv) Cash Credit Agreement under which the Defendants hypothecated Stock-in-Trade. (v) Agreement for Collateral Security for Hypothecation of Plant and Machinery. A Guarantee Agreement was executed by the Defendant No.2 guaranteeing repayment. 3 On 28.3.1997 and 3.7.1999, the Defendant No.1 executed Letters of Acknowledgement of Debt. Inspite of several demands by the Plaintiff-Bank, the Defendants failed and neglected to pay the liabilities under the said Credit Limit. The Plaintiff-Bank also sent notices through their Advocate dated 12.8.1997 dated 24.2.2000. However, the outstanding dues remained to be paid. 3 S.2592-2000.sxw 4 The Defendants have failed to file Written Statement despite the service of Writ of Summons. The claim of the Plaintiff-Bank has gone uncontroverted. The suit is listed for exparte decree. 5 The Plaintiff-Bank has filed Affidavit in lieu of examination- in-chief and Compilation of documents. The Plaintiff-Bank has made out a case for the grant of reliefs and is entitled to a decree under Order VIII Rule 10 of the Code of Civil Procedure, 1908. 6 The suit to stand decreed against the Defendants in terms of prayer clauses (a) and (c) with a modification that the Plaintiff-Bank shall be entitled to simple interest @ 10 % p.a. from the date of filing of suit till payment or realisation. (A.A. SAYED, J.) 4 S.2592-2000.sxw
Questions this judgment answers
Which statutory provisions did this judgment involve?
Code of Civil Procedure, 1908 — O. VIII r. 10.
Which court decided this case, and when?
Bombay High Court, on 28 Jun 2012. The bench was A A SAYED.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.