A.K.RATH
Pandi Appa Rao – Appellant
Versus
Indian Bank, Brach at Parlakhemundi represented by the Regional Manager – Respondent
JUDGMENT :
A.K. RATH, J.
1. The defendants are the appellants against a reversing judgment.
2. The plaintiff-respondent instituted the suit for realization of Rs.5471.45 from the defendants. The case of the plaintiff-Bank was that on 10.1.1978 defendant no.1 borrowed a sum of Rs.3,500/-from the plaintiff-Bank. Defendant no.2 stood surety for the said loan. Accordingly, they had executed a Demand Promissory Note (“D.P.Note”). When the defendants failed to make any payment, the plaintiff-Bank instituted the suit for realization of the loan amount.
3. The defendants filed a written statement denying the assertions made in the plaint. According to them, defendant no.1 had neither applied for loan, nor received any amount from the plaintiff-Bank. They had not executed the D.P.Note. In the month of January, 1978, defendant no.2 had applied for an agricultural loan of Rs.3,000/-to the plaintiff-Bank. The plaintiff-Bank sanctioned a sum of Rs.3,000/-which was paid to him on 10.1.1978. Defendant no.1 stood as a guarantor. The then Branch Manager obtained the signatures of defendant no.1. Defendant no.1 signed the papers on the assumption that he was signing as a surety for the loan taken by his
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