9911796707
|
Home
Issues involved: Suit for recovery of debt, non-joinder of necessary party, territorial jurisdiction, time-barred claim, interest calculation, duty to sell pledged goods.
Issue 1 - Competency of the plaintiff's representative: The plaintiff's Manager was authorized to file the suit as per a valid Power of Attorney, establishing his competence to represent the plaintiff bank. Issue 2 - Non-joinder of necessary party: The previous Managing Director of the defendant was not a necessary party as he did not incur personal liability for the loan, hence the suit was not defective for non-joinder. Issue 3 - Time-barred claim and credit facility availed: Evidence proved that the defendant availed a cash credit facility of Rs. 2 lakhs and acknowledged the balance due in 1977, within the limitation period, thus the claim was not time-barred. Issue 4 - Interest calculation and amount due: The interest was correctly calculated at 16 1/2 % per annum as per the agreement, and the balance due was established through account statements. Issue 5 - Duty to sell pledged goods: The plaintiff bank was not obligated to sell the pledged goods immediately, as per Section 176 of the Contract Act, which allows the pawnee to retain the goods as collateral security until the debt is cleared. The defendant had the option to request the sale of goods if needed, but no such request was made. The plaintiff's decision to file the suit and retain the goods was legally valid, even if the value of the goods deteriorated over time. The defendant was required to clear the debt before demanding the pledged goods, as per Section 177 of the Contract Act. Relief: The court had territorial jurisdiction, and the suit was decreed in favor of the plaintiff for the recovery of Rs. 3,29,193.61 with interest at 16 1/2 % per annum. The amount realized from the sale of pledged goods was to be adjusted in the decree.
|
