IMPORTANT POINT
Section 20 of the NI Act confers authority on the holder of an instrument to make or complete the instrument.

M. Y. Eqbal, J. —This appeal is directed against the judgment and decree dated 30.9.1999 passed by Subordinate Judge-II, Seraikella in Money Suit No.3 of 1997 whereby the suit filed by the plaintiff/appellant of recovery of a sum of Rs.2,75,321.48 has been dismissed mainly on the ground that the same was barred by limitation.

2. The plaintiff Bank of India having its Adityapur branch, filed the aforementioned suit against the respondents for recovery of the loan amount together with interest taken by them. The plaintiff appellant’s case inter alias, was that defendant/respondent No.2 as proprietor of defendant/respondent No.1 M/s. Aswi Electricals, approached the plaintiff Bank for financials, approached by way of loan and cash credit facility. On the request of the respondents, the plaintiff Bank sanctioned a loan of Rs.1,10,000 and a cash credit facility to a limit of Rs.60,000. Respondent No.2 for self and as proprietor of defendant No.1 executed number of documents on 8.10.1987 including demand promissory notes, agreement of hypothecation, continuing security, letter of lien, agreement of guarantee, etc. Defendant/respondent No.3 became the surety and executed letter of continuing guarantee in favour of the Bank. The plaintiff's further case was that the defendants defaulted in liquidating the amount taken from the Bank. The plaintiff by notice dated 24.10.1997 requested the respondents to reply the outstanding dues, but the latter did not pay any heed. Further case of the plaintiff was that the respondents executed letters of acknowledgment acknowledging their liability, but they have not liquidated the dues. Hence, suit was filed.

3. The defendants/respondents contested the suit by filing written statement. The defendant’s case was that the suit as framed was not maintainable as because the plaint was not properly signed and verified. They have admitted the taking of loan and execution of documents in favour of the plaintiff Bank, but according to the defendants, neither they have received any notice from the Bank nor they have acknowledged their liability. The defendant’s case is that the signatures of the respondents were obtained in blank documents which have been used as per the convenience of the Bank.

4. The trial Court framed as many as 11 issues which are as under:

(1) Is the suit as framed maintainable?

(2) Has the plaintiff got any valid cause of action for the suit?

(3) Is the suit time barred?

(4) Has the plaint been properly signed and verified by competent person according to the provisions of Order VI, Rules 14 and 15 of the CPC?

(5) Whether states barred under Order Vll, Rule 4, CPC?

(6) Whether the defendants executed properly and legally documents in favour of the plaintiff Bank to secure the aforesaid two loans from the plaintiff Bank?

(7) Is the Statement of account correct?

(8) Whether the suit is barred under the provisions of Section10 of Indian Contract Act?

(9) Whether the plaintiff Bank in collusion with B.S.F.C. violated the order of Hon’ble Court passed in CWJC No.111 of 1998 (R)?

(10) Whether the plaintiff is entitled to a decree for the amount claimed with interest and other charges pendente lite and future till realisation?

(11) To what other relief or reliefs any of the plaintiff is entitle to get?

5. Issue No.3 regarding limitation has been discussed at length by the trial Court and finally came to the conclusion that the suit barred by limitation.

6. Mr. A. Allam, learned counsel appearing for the appellant Bank assailed the impugned judgment and decree as being illegal, contrary to facts on record and is wholly without jurisdiction. Learned counsel submitted that the defendants/respondents have not disputed rather admitted the grant of loan and cash credit facility and execution of documents. The Court below has committed serious illegality insofar as it held that these documents cannot be relied upon as the signatures of the respondents did not bear any dat