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1994 Supreme(Mad) 913

ABDUL HADI, A.R.LAKSHMANAN
C. Rajagopal – Appellant
Versus
State Bank of Travaneore, Karur Branch, Karur and others – Respondent


Advocates:
R. Aravindan for T.V.Balakrishnan, for Appellant. T.V. Sekar, for Respondents.

Judgment :-

AR.Lakshmanan, J.

The 4th defendant in O.S.No.14 of 1982 on the file of Sub Court, Vridhachalam, is the appellant in the present appeal. The 1st respondent-Bank filed the suit against the appellant and respondents 2 to 4 for recovery of a sum of Rs.69,083.52 together with subsequent interest and for costs. According to the 1st respondent, respondents 2 to 4 herein approached the bank for loan facilities to be granted to them under two classifications styled as “Cash Credit Facility’ ‘and” Over Draft Facility on Trade Bills“, for the purpose of expanding and developing their business. The appellant herein, who was the 4th defendant in the suit, has expressed his willingness to stand as guarantor for the facilities granted and to be granted by way of enhancement. Accordingly the plaintiff initially granted the maximum limit of Rs.10,000 on 3. 1979 on the Loan Classification” Cash Credit Facility “ and a maximum limit of Rs.25,000 on 3. 1979 in” Over Draft on Trade Bills". Respondents 2 to 4 have executed necessary promissory notes and other documents in favour of the Bank as required under the Rules. Respondents 2 to 4 have also agreed to hypothecate their goods and whole



















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