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1990 Supreme(Ori) 72

K.C.JAGADEB ROY
INDIAN BANK – Appellant
Versus
KAMALALAYA CLOTH STORE – Respondent


Advocates Appeared:
J.Berhampur, J.Naik, K.V.SHARMA

K. C. JAGADEB ROY, J.

( 1 ) THE present appellant filed T. M. S. No. 105/79 for a mortgage decree for recovery of Rs. 24,905/- with future interest.

( 2 ) THE undisputed facts leading to the case are that the plaintiff-Bank sanctioned a sum of Rs. 15,000/- as a loan to M/s. Kamlalaya Cloth Store, Khallikot. M/s. Kamlalaya Cloth Store was represented by defendant No. 1, the sole proprietor in the suit. Defendant No. 2 was the surety for the loan granted. It was a commercial loan sanctioned to the loanee for improvement of his business. The defendants did not appear and case was set ex parte. In the ex parte judgment dated 2-5-1980, learned Subordinate Judge, Berhampur passed a preliminary decree for Rs. 24,905/- against the defendants with costs. The defendants under the decree were required to pay to the plaintiff pendente lite and future interest at the rate of 16 1/2 % per annum on the principal amount of Rs. 15,000/ -.

( 3 ) THE appellant-plaintiff has urged in this appeal the sole point that though the principal amount of loan was Rs. 15,000/- with interest, the amount outstanding against the defendant, on the date of the suit was Rs. 24,905/- which was the suit amount, the t

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