V. BALAKRISHNA ERADI, Y. V. CHANDRACHUD
Bank Of Baroda – Appellant
Versus
Mohd. Bhai – Respondent
Judgment
CHANDRACHUD, CJI. : - The appellant, the Bank of Baroda, agreed through its Banswara Branch to sanction a demand loan facility in the sum of Rs. 36,000/- in favour of respondent 1. In consideration thereof, respondent 1 executed a demand promissory note in favour of the Rank on June 18, 1973. He also executed a bond hypothecating the standing crop of his lands situated at Khandu and Surjipada in Rajasthan. Respondents 2 and 3 are the guarantors for the repayment of the loan. In order to further secure the repayment of the loan, respondent 1 executed a deed of simple mortgage in favour of the Bank, in respect of the lands at Khandu and Surjipada.
2. The respondents having failed to repay the loan, the appellant filed against them a suit in the court of the learned District Judge, Banswara, for recovering a sum of Rs. 52,000/-odd which was due on the loan transaction. Respondents raised a preliminary objection to the maintainability of the suit on the ground that the claim in the suit was essentially one for enforcing the mortgage executed by them in favour of the Bank and, therefore, the Revenue court had the exclusive jurisdiction to entertain the suit, by reason of the prov
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