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Issues:
- Challenge to decree by guarantors on grounds of limitation - Claim by bank against borrower and guarantors for recovery - Dispute over the extension of loan period and deposits made - Burden of proof on bank regarding deposits and limitation - Examination of evidence and witness testimonies - Recovery of debt from hypothecated goods Analysis: 1. The appeal challenges a decree favoring the bank against the borrower and guarantors, primarily on the grounds of limitation. The bank filed a civil suit for recovery against all defendants, seeking repayment of the loan amount and interest. The loan was granted to the borrower, who subsequently passed away, leaving guarantors liable. The guarantors argue that the suit is time-barred, emphasizing the necessity for the bank to prove deposits and extension of the loan period. 2. The guarantors contend that the loan extension was without their consent, and mere deposits by the borrower are insufficient to extend the limitation period. They stress the bank's duty to prove that deposits were made by the borrower or authorized agents. The legal provisions of the Limitation Act and Banker's Books Evidence Act are invoked to support the argument that the burden of proof lies with the bank regarding the deposits and acknowledgment of the loan. 3. The bank, on the other hand, asserts that the suit is within limitation, presuming deposits made by the borrower based on lack of denial. However, the guarantors emphasize the need for the bank to establish the authenticity of deposits, especially in the absence of denial by the deceased borrower. The bank's failure to prove deposits raises questions about the suit's validity within the limitation period. 4. Witness testimonies and evidence examination reveal discrepancies regarding the deposits, loan acknowledgment, and possession of hypothecated goods. The bank's actions in recovering the debt from the borrower and guarantors are scrutinized, with emphasis on the bank's responsibility to auction the hypothecated property for recovery. The court modifies the decree, allowing the bank to recover the debt from the hypothecated goods while dismissing the appeal on cost grounds. 5. In conclusion, the judgment delves into the complexities of proving deposits, extending the limitation period, and recovering debts from guarantors. The legal interpretations of the Limitation Act and Banker's Books Evidence Act play a crucial role in determining the suit's validity. The court's decision balances the rights and obligations of the parties involved, ensuring a fair resolution in light of the legal principles and evidence presented during the proceedings.
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