9911796707
TMI Blog1992 (4) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... , an Advocate and Standing Counsel for the first appellant filed a private complaint in the court of Addl. Chief Judicial Magistrate, Katni in C.C. No.933/91 offences under s.409 and ss.109/114 I.P.C. The facts stated in the complaint run thus : The first appellant's branch at Katni gave a loan of ₹ 15,000 to one Sriman Narain Dubey on May 5, 1984 and the respondent and his wife Annapoorna stood as guarantors, executed Annexure 'P' security bond and handed over Fixed Deposit Receipt for a sum of ₹ 24,000 which would mature on November 1, 1988. At maturity its value would be at ₹ 41,292. The principal debtor committed default in payment of the debt. On maturity, the Branch Manager, 5th appellant, Sri V.K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial parts thus : We Confirm having handed over to you by way to security against your branch office Katni F.D. Account No. 77/83 dated November 1, 1983 for ₹ 24,000 in the event of renewal of the said Fixed Deposit Receipt as security for the above loan. We Confirm...the F.D.R. will continue to remain with the bank as security here . The amount due and other charges, if any, be adjusted and appropriated by you from the proceeds of the said F.D.R. at any time before, on or its maturity at your discretion, unless the loan is otherwise fully adjusted from the dues on demand in writing made by you.... We give the bank right to credit the balance to our saving banks account or any other amount and adjust the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time barred debt does not cease to exist by reasons of s.3. That right can be exercised in any other manner than by means of a suit. The debt is not extinguished, but the remedy to enforce the liability is destroyed. What s.3 refers is only to the remedy but not to the right of the creditors. Such debt continues to subsists so long as it is not paid. It is not obligatory to file a suit to recover the debt. It is settled law that the creditor would be entitled to adjust, from the payment of a sum by a debtor, towards the time barred debt. It is also equally settled law that the creditor when he is in possession of an adequate security, the debt due could be adjusted from the security in his possession and custody. Undoubtedly the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clining to quash the complaint on the finding that the Bank acted prima facie high handedly. It is also salutary to note that judicial process should not be an instrument of oppression or needles harassment. The complaint was laid impleading the Chairman, the Managing Director of the Bank by name and a host of officers. There lies responsibility and duty on the Migistracy to find whether the concerned accused should be legally responsible for the offence against the juristic person or the persons impleaded then only process would be issued. At that stage the court would be circumspect and judicious in exercising discretion and should take all the relevant facts and circumstances into consideration before issuing process lest it would be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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